
=== PDF PAGE 1 ===
Annual F inancial Repor  t
For the F iscal Year Ended August 31, 2023
(With Independent Auditor’s Repor t)

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=== PDF PAGE 3 ===
  Central Texas Turnpike  System
  An Enterprise Fund of
  the Texas  Department  of Transportation



  Annual Financial Report
  For the Fiscal Year Ended
  August 31, 2023






  Prepared by:
  Financial Management Division of the Texas Department of Transportation

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  CENTRAL TEXAS TURNPIKE SYSTEM
  Annual Financial Report
  For the Fiscal Year Ended August 31, 2023


  TABLE OF CONTENTS

INTRODUCTORY SECTION (Unaudited)
  Letter of Transmittal����������������������������������������������������������������������������������������������������������  8
  Organizational Chart ��������������������������������������������������������������������������������������������������������  10

FINANCIAL SECTION
  Independent Auditor ’s  Report���������������������������������������������������������������������������������������������  15
  Management’s Discussion and Analysis (Unaudited)������������������������������������������������������������������  19
  Basic Financial Statements:
  Statement of Net Position�����������������������������������������������������������������������������������������������  25
  Statement of Revenues, Expenses and Changes in Net Position���������������������������������������������������  26
  Statement of Cash Flows������������������������������������������������������������������������������������������������  27
  Notes to Financial Statements������������������������������������������������������������������������������������������  30

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  Section One
Introductory Section

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  December 15, 2023

  To: The Citizens of the State of Texas and the Creditors of the Central Texas Turnpike System

  The audited annual financial statements of the Central Texas Turnpike System (CTTS) for the year ended Aug. 31, 2023 are
  enclosed in accordance with the Indenture of Trust dated July 15, 2022. The Indenture of Trust, as supplemented by the first through
  eighth Supplemental Indentures (Indenture), requires the preparation and submission of audited annual financial statements.

  An external audit firm, Crowe LLP, performed an independent audit, in accordance with generally accepted auditing standards,
  of CTTS’ basic financial statements for the year ended Aug. 31, 2023. The audit opinion is presented in this report preceding the
  financial statem ents. This rep ort was prepared  by the accou ntin g staff in  the  Financial Managem ent  Division of the Texas  Department
  of Transportation (TxDOT). CTTS’ internal accounting controls provide reasonable assurance regarding the safeguarding of assets
  against loss from unauthorized use or disposal and the reliability of financial records for preparing financial statements. The concept
  of reasonable assurance recognizes that the cost of a control should not exceed the resulting benefit.

  Management is responsible for the accuracy of the data in this report as well as for the completeness and fairness of the
  presentation. Consequently, management assumes full responsibility for the completeness and fairness of all of the information
  presented in the financial statements. To the best of my knowledge and belief, the financial statements are accurate in all material
  respects, are reported in a manner that presents fairly the financial position and results of operations of CTTS and provide disclosures
  that enable the reader to understand CTTS’ financial condition.

  The Management’s Discussion and Analysis (MD&A) provides a narrative introduction, overview and analysis of the financial
  activities of TxDOT. We encourage readers to consider the information in this letter of transmittal in conjunction with the MD&A.

  Profile of the Government

  This report includes financial statements for CTTS, a fund within TxDOT’s reporting entity. TxDOT is an agency of the state
  of Texas. TxDOT is managed by an executive director and is governed by the five-member Texas Transportation Commission. All
  members of the Commission are appointed by the Governor. The Commission is authorized to issue general obligation and revenue
  bonds per statutory and constitutional provisions.

  Texas Transportation Code grants the Commission the authority to study, plan, design, construct, finance, operate and maintain
  turnpikes in all 254 counties of the state as a part of the state’s highway system. The Commission can issue turnpike revenue bonds
  to pay all or a part of the cost of a turnpike project, to enter into comprehensive development agreements to execute projects and to
  acquire right of way through quick-take procedures. Such revenue bonds were issued to fund a portion of the costs of constructing
  the CTTS roadways.

  Budgetary Controls

  Annual budgets are approved by the Texas Transportation Commission in accordance with the indenture and reviewed by the
  general  engineering consultants. These budgets are entered and maintained in  the statewide accounting system as collected  revenues
  or reimbursements. Controls are maintained at the agency level, with additional control at the fund and appropriation level to ensure
  expenditures do not exceed collected amounts.











Fiscal Year Ending August 31, 2023 - Central Texas Turnpike System  Page 1
Page 8  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 9 ===
  Information Useful in Assessing CTTS’ Financial Condition

  TxDOT and the Trustee are responsible for en suring that fund s maintain  the p roper minimum  balances as set forth in the In denture
  and for investing in securities required to meet liquidity requirements. The criteria for suitable investments for each fund type are
  detailed in the Commission’s investment strategies.

  All monies in the revenue fund, debt service funds, rate stabilization fund and construction fund – capital contributions account
  are invested in money market funds, government securities and investment pools that are in compliance with the Commission’s
  investment policy.

  The debt service reserve fund is invested in an investment pool and a repurchase agreement collateralized by U.S. Treasury and
  Agency Securities.

  Acknowledgements

  The preparation of the report requires the efforts of individuals throughout TxDOT, including the dedicated efforts of the
  management and staff of the TxDOT’s Financial Reporting Section and other sections of the Financial Management Division, and
  the Project, Finance, Debt and Strategic Contracts Division. I sincerely appreciate the efforts of all these individuals who continue
  to help make TxDOT a leader in quality financial reporting.

  Sincerely,
















































Page 2  Fiscal Year Ending August 31, 2023 - Central Texas Turnpike System
Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 9

=== PDF PAGE 10 ===
  Texas Department of Transportation
  Organization Chart as of August 31, 2023








  Compliance  Transportation
  Townsend  Commission
  Chief Audit & Compliance
  Officer
  Ybarra
  Internal Audit
  Otto  Executive Director
  M. Williams





  Chief of Staff  General Counsel
  Griss  Graham
  Civil Rights
  Deputy Executive Director  Deputy Executive Director  Bryant
  Planning & Administration  Program Delivery
  Hendrickson  Barth  Occupational
  Safety
  S. Salazar



  Chief Engineer
  Simmons









  Director  Director Strategy  Government  Chief  Director Planning  Director  Director Project  Chief Financial  Chief Information
  Communications  & Innovation  Affairs  Administrative  & Modal  Director District  Engineering &  Development  Officer  Officer
  & Public Affairs  Anderson  Thomas  Officer  Programs  Operations  Safety Operations  Bur  S. Stewart  Selissen
  Garcia  McMonagle  Mays  C. Johnson  Butler



  Research &  Contract Services  Alternative  Financial  Information
  Technology  Aviation  Abilene  Bryan  Houston  Pharr  Bridge  Delivery  Management  Technology
  Implementation  K. Stewart  Harmon  Allbritton  Bohne  Paul  Alvarez  Bettis  Selissen
  Communications  Pete  Snider  Landry
  Hodges
  Fleet Operations  Maritime  San Angelo  Construction  Design
  Strategic Planning  Kalhagen  Amarillo  Childress  Laredo  Ramthun  Project Finance,
  Travel  Kemp  Pratt  B. Johnson  Lankford  E. Gonzalez  Cowen  Milligan  Debt & Strategic

  Information  Contracts
  Henderson  Human Resources  Public  San Antonio  Maintenance  Environmental  Asher
  McMillan  Transportation  Atlanta  Corpus Christi  Lubbock  Affairs
  Gleason  Wells  Olivarez  Warren  Gallegos  Stevenson  Booher

  Toll Operations
  Procurement  Rail  Tyler  Materials & Tests  Professional  T. Johnson
  Wood  Davis  Austin  Dallas  Lufkin  Webb  Barborak  Engineering Proc.
  Ferguson  Clemens  Morris  Services
  Rodin
  Support Services  Transportation  Waco  Traffic Safety
  Sweat  Planning &  Beaumont  El Paso  Odessa  Swiatek  Chacon
  Programming  Right of Way
  H. Gonzalez  M. Gonzalez  Trevino  Lykins  Madsen

  Wichita Falls
  Brownwood  Fort Worth  Paris  Beaver  Transportation
  Cedillo  D. Salazar  Paramanantham  Programs

  Yoakum  C. Williams

  Horst
*Interim








  Fiscal Year Ending August 31, 2022 � Central Texas Turnpike System  Page 10

=== PDF PAGE 11 ===
  TEXAS DEPARTMENT OF TRANSPORTATION
  TEXAS TRANSPORTATION COMMISSION
  as of August 31,  2023




















  J. Bruce Bugg, Jr  .  W . Al  v  i  n Ne  w  Ro  be  r  t C. Va  ug  hn
  C  h  a  irma n  Com m issioner  Com m issioner
  Sa  n Antonio  Sa  n  Ange  lo  Da  lla  s



















  Alejandro “Alex” G. Me a de  III  Ste  v  e  n D. Al  v  i  s
  Com m issioner  Com m issioner
  M  is s io  n  Houston














Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 11

=== PDF PAGE 12 ===
  TEXAS DEPARTMENT OF TRANSPORTATION
  TxDOT  ADMINISTRATION
  as of August 31,  2023


  T  h  e  f  o  llo  w in  g is  a  lis  t  o  f  a  d  m  in  is  tr a  t  or s  w h  o  o  ve  r s  ee  t  h  e T  e  xa  s  D e  p  a  r tm  e  nt o  f  T  r a  n  sp  or ta  t  io  n  .  All T  x  DOT  d  is t  r ic  t  s ,
  divisions a  nd offices report to a  m em ber of the a  dm inistra  tion, hea  dqua  rtered in Austin.










  Marc Williams  B r a  ndy  e  Brian Barth  Ri  c ha  r d  Benito Ybarra  Lance W.
  Ex ecu tiv e Directo r  He ndr i  c kso  n  Deputy Executive  McMonagle  Ch ief  Au d it an d  Si  m m o  ns
  Deputy Executive  Director for  Ch  ie f  Co m p lian ce  Ch ief En gin eer
  Director for  Pro gram Deliv ery  Ad m in is  tr ativ e  Officer
  Planning and  Officer
  Ad m in is  tr atio n










  Ste phe n  Anh Se l  i  sse n  Ma  r y  Anne  Al  e ja  ndr o  Carl Johnson  Jessica Butler
  Stewart  Chief Information  Gr i ss  Garcia  Dir ecto  r  o  f  Dis  tr ict  Director of
  Ch  ie f  Fin an cial  Officer  Chief of Staff  Director of  Op er atio n s  Engineering and
  Officer  Co m m u n icatio n s  Safety  Op eratio n s
  an d  Pu b lic Af f air s










  T  r e nt T  ho  m a  s  Caroline Mays  Mo  ha  m e d  Darran  Jef f  Graham
  Director of  Director of  “Mo” Bur  Ande r so  n  Gen eral Co u n s el
  Government  Planning and  Dir ecto r  o f  Pr o ject  Director of
  Affairs  Modal Programs  Dev elo p m en t  Strategy  an d
  Innovation




  As of August 31, 2023




Page 12  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 13

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  Section Two
  Financial Section






































Page 14  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 15 ===
  Crowe LLP
  Independent Member Crowe Global






  INDEPENDENT AUDITOR'S REPORT



  Members of the Texas Transportation Commission
  State of Texas


  Report on the Audit  of the Financial Statements

  Opinion

  We have audited the financial statements of the Central Texas Turnpike System (System), an enterprise
  fund of the Texas Department of Transportation (TxDOT), an agency of the State of Texas, as of and for
  the year ended August 31, 2023  , and the related notes to the financial statements, as listed in the table of
  contents.

  In our opinion, the accompanying  financial statements referred to above present fairly, in all material
  respects, the financial position of the System, of TxDOT, as of August 31, 2023, and the changes in its
  financial position  and its cash flows  for the year then ended in accordance with accounting principles
  generally accepted in the United States of America.

  Basis for Opinion

  We conducted our audit in accordance with auditing standards generally accepted in the United States of
  America (GAAS)  and the standards applicable to financial audits contained in Government Auditing
  Standards (Government Auditing Standards), issued by the Comptroller General of the United States. 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 required to be independent of TxDOT  , and to meet
  our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.
  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
  audit opinion.

  Emphasis of Matter

  As discussed in Note 1  , the financial statements present only the System and do not purport to, and do not,
  present fairly the financial position of TxDOT or the State of Texas, as of August 31, 2023, and  the changes
  in its financial position, or, where applicable, its cash flows  for the year then ended in accordance with
  accounting principles generally accepted in the United States of America. Our opinion is not modified with
  respect to this matter.

  Responsibilities of Management for the Financial Statements

  Management is responsible for the preparation and fair presentation of the financial statements in
  accordance with accounting principles generally accepted in the United States of America, and for  the
  design, implementation, and maintenance of internal control relevant to the preparation and fair
  presentation of financial statements that are free from material misstatement, whether due to fraud or error.






Fiscal Year Ending August 31, 2023  � Central Texas Turnpike System  Page 15

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  Auditor’s Responsibility 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 absolute assurance and therefore
  is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards
  will always detect a material misstatement when it exists. 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. Misstatements are considered
  material if there is a substantial likelihood that, individually or in the aggregate, they would influence the
  judgment made by a reasonable user based on the financial statements.

  In performing an audit in accordance with GAAS and Government Auditing Standards  , we

  •  Exercise professional judgment and maintain professional skepticism throughout the audit.
  •  Identify and assess the risks of material misstatement of the financial statements, whether due to
  fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
  include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
  statements.
  •  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 TxDOT  ’s internal control. Accordingly, no such opinion is expressed.
  •  Evaluate the appropriateness of accounting policies used and the reasonableness of significant
  accounting estimates made by management, as well as evaluate the overall presentation of the
  financial statements.

  We are required to communicate with those charged with governance regarding, among other matters, the
  planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
  that we identified during the audit.

  Required Supplementary Information

  Accounting principles generally accepted in the United States of America require that the Management’s
  Discussion and Analysis on pages 9  -12  be presented  to supplement the basic financial statements. Such
  information is the responsibility of management and, although not a part of the basic financial statements,
  is required by the Governmental Accounting Standards Board who considers it to be an essential part of
  financial reporting for placing the basic financial statements in an appropriate operational, economic, or
  historical context. We have applied certain limited procedures to the required supplementary information in
  accordance with auditing standards generally accepted in the United States of America, which consisted of
  inquiries of management about the methods of preparing the information and comparing the information for
  consistency with management's responses to our inquiries, the basic financial statements, and other
  knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or
  provide any assurance on the information because the limited procedures do not provide us with sufficient
  evidence to express an opinion or provide any assurance.

  Other Information

  Management is responsible for the other information included in the annual report. The other information
  comprises the introductory section  but does not include the basic financial statements and our auditor's
  report thereon. Our opinion on the basic financial statements do not cover the other information, and we do
  not express an opinion or any form of assurance thereon.

  In connection with our audit of the basic financial statements, our responsibility is to read the other
  information and consider whether  a material inconsistency exists between the other information and the
  basic financial statements, or the other information otherwise appears to be materially misstated. If, based
  on the work performed, we conclude that an uncorrected material misstatement  of the other information
  exists, we are required to describe it in our report.




Page 16  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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  Other Reporting Required by Government Auditing Standards

  In accordance with Government Auditing Standards  , we have also issued our report dated December 15,
  2023  ,  on  our  consideration  of  TxDOT’s  internal  control  over  ﬁnancial  reporting  and  on  our  tests  of  its
  compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
  The  purpose  of  that  report  is  solely  to  describe  the  scope  of  our  testing  of  internal  control  over  ﬁnancial
  reporting and compliance and the results of that testing, and not to provide an opinion on the eﬀectiveness
  of the TxDOT’s internal control over ﬁnancial reporting  or on compliance. That report is an  integral part of
  an audit performed in accordance with Government Auditing Standards in considering TxDOT’s internal
  control over ﬁnancial reporting and compliance.





  Crowe LLP

  Austin, Texas
  December 15, 2023
















































Fiscal Year Ending August 31, 2023  � Central Texas Turnpike System  Page 17

=== PDF PAGE 18 ===
  Section Two  (Continued)
  Management’s Discussion & Analysis
  (Unaudited)



































Page 18  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 19 ===
  Management’s Discussion and Analysis

  As management of the Texas Department of Transportation (TxDOT), we offer readers of the Central Texas Turnpike System’s
(CTTS) financial statements this narrative overview and analysis of its financial activities for the year ended Aug. 31, 2023, with selected
comparative information for the year ended Aug. 31, 2022. The information presented should be read in conjunction with our letter of
transmittal, the financial statements and the accompanying notes to the financial statements.

Highlights

  During fiscal 2023, CTTS generated $274.2 million in toll revenues (net of allowance), an increase of $61.1 million or 28.7 percent
over fiscal 2022, due to increased traffic and also to the substantial resolution of interruptions caused by the TxDOT toll back office
transition to a new provider in fiscal 2021. CTTS roadways recorded 193.6 million transactions in fiscal 2023, an increase of 11 percent
over fiscal 2022.

  CTTS’ indenture requires certain operating, maintenance, and reserve maintenance funds to be held separate and apart from its other
funds and accounts. As of Aug. 31, 2023, these funds held reserves of $96.9 million. These balances will enable CTTS to pay directly
for budgeted expenses throughout the coming year.

  The assets and deferred outflows of CTTS exceeded its liabilities and deferred inflows by $217.4 million as of Aug. 31, 2023, an
increase of $31.4 million or 16.9 percent from fiscal 2022. The increase mainly reflects an increase in capital assets of $40.1 million,
offset by an increase in noncurrent  liabilities of $25.3.

Overview of the Financial Statements

  The annual financial report consists of two parts: management’s discussion and analysis (this section) and the basic financial statements
with their accompanying notes.

Fund Financial Statements

  A fund is a group of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. TxDOT, like other states and local governments, uses fund accounting to ensure and demonstrate compliance with finance�
related legal requirements. Proprietary funds are used to account for a government’s business�type activities. The activities related to
CTTS are accounted for in an enterprise fund, which is a type of proprietary fund used to report activities in which a fee is charged to
external users for goods and services.
































Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 19

=== PDF PAGE 20 ===
Financial Analysis

  The overall financial position and operations of CTTS for the past two years is summarized as follows.

  Statement of Net Position
  Aug ust 31, 2023 and 2022 (A mou nts in T housands)
  2023  2022
  A S SETS
  Assets Other Than Capital Assets  $ 656,840  $ 612,202
  Capital Assets  2,594,928  2,554,860
  Total Assets  3,251,768  3,167,062
  DEFER R ED OUTFLOWS OF R ESOU RCES  27,202  29,600

  LIABILITIES
  Cu r rent Liabilit ies  170,238  143,345
  Noncu r rent Liabilit ies  2,867,682  2,842,300
  Tot al Liabilit ies  3,037,920  2,985,645
  DEFER R ED I NFLOWS OF R ESOU RCES  23,675  25,067

  N ET POSI T ION
  Net Invest ment in Capital Assets  413,619  465,225
  Rest r icted for Debt Ser vice  175,418  186,436
  Rest r icted for Operations and Maintenance  90,561  37,277
  Unrestricted  (462,223)  (502,988)
  Total Net Position  $ 217,375  $ 185,950


  Changes in Net Position
  For the Fiscal Years Ended Aug ust 31, 2023 and 2022 (A mou nts in T housands)
  2023  2022
  OPER ATI NG R EV ENU ES
  Operating Revenues  $ 345,176  $ 256,524
  Total Operating Revenue  345,176  256,524

  OPER  AT I NG EX PENSES
  Operating Expenses  234,217  230,298
  Total Operating Expenses  234,217  230,298

  Operating Income  110,959  26,226
  Total Nonoperating Revenues (Expenses)  (91,221)  (113,849)
  Income (Loss) before Capital Cont r ibution and Transfer  19,738  (87,623)

  Capital Cont ribution  61  322
  Tr  a  n s f e r  s  I  n  11,626
  Tr  a  n s f e r  s  O  u t  (161)
  Total Capital Cont r ibution and Transfers  11,687  161
  Change in Net Position  31,425  (87,462)

  Net Position – Begin ning  185,950  273,412
  Net Position – Ending  $ 217,375  $ 185,950



Page 20  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 21 ===
  Net position may serve over time as a useful indicator of CTTS’ financial position. Net position will decline as additional noncurrent
liabilities are accrued via principal accretion on outstanding CTTS debt, and as capital assets are depreciated and amortized. Debt service
was $151.7 million in fiscal 2023 and is scheduled to increase to $163.0 million in fiscal 2024. Operations and maintenance expense
(excluding depreciation) is estimated to increase approximately $68.1 million.

Capital Assets  and  Debt Administration

Capital Assets

  As of Aug. 31, 2023, CTTS had approximately $2.6 billion in net capital assets.

  Capital Assets-Net of Depreciation and Amortization
  August 31, 2023 and 2022 (Amounts in Thousands)
  2023  2022
  Land  $ 668,525  $ 668,831
  Constr uction in Progress  48,761  100,138
  Land Use R ights  19,466  19,466
  Sof t wa re  29,787  39,999
  Inf rast r uct u re�  Roadways and Br idges  1,730,835  1,723,989
  Buildi ngs  2,076  2,437
  Right�  to�  Use Subscriptions  95,478
  Total Capital Assets  $ 2,594,928  $ 2,554,860


  Debt Administration

  The increase in net capital assets of $40.1 million mainly reflects transfer in of $129.1 of a right�to�use subscription and $11.4 million
of other additions, offset by annual depreciation and amortization of $100.3 million.

  The Commission has issued revenue bonds backed by the pledged revenues and restricted assets specified in the bond resolutions.
As of Aug. 31, 2023, CTTS had approximately $2.9 billion of outstanding revenue bond debt. See Notes 4 & 5 for more information.

  Outstanding Debt Obligations
  August 31, 2023 and 2022 (Amounts in Thousands)
  2023  2022
  Revenue Bonds Payable  $ 2,650,007  $ 2,683,020
  Revenue Bonds Payable � Direct Placements  225,000  225,000
  Total Outstanding Debt  $ 2,875,007  $ 2,908,020
























Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 21

=== PDF PAGE 22 ===
  Bond Credit Ratings

  The outstanding bonds of CTTS were rated by each of the three major Nationally Recognized Statistical Rating Organizations. As
of Aug. 31, 2023, the CTTS bonds carried the following ratings:

  CTTS Credit Ratings as of August 31, 2023
  (A mou nts in Thousands)

  Bond Descript ion  Net Outstanding  M o o d y’s  S & P  Fitch
  First Tier Bonds Ser ies 2002�  A
  Non�  Callable Capital Appreciation Bonds  $ 446,215  A3  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2012�  A  129,600  A3  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2015�  B  214,976  A3  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2015�  B
  Capital Appreciation Bonds  134,181  A3  A  A+
  Second Tier Revenue Ref u nding Bonds, Ser ies 2015�  C  1,233,003  B a a1  A�  A�
  First Tier Revenue Ref u nding Bonds, Ser ies 2020�  A  212,727  A3  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2020�  B  225,000  A3  A  A+
  First Tier Revenue Ref u nding Bonds, Ser ies 2020�  C  279,305  A3  A  A+
  To  t  a  l  $ 2,875,007


  An explanation of the significance of each rating may be obtained from the company furnishing the rating. The ratings reflect only
the views of such companies at the time such ratings are given, and the Commission makes no representation as to the appropriateness of
the ratings. There is no assurance that such ratings will continue for any given period of time or that they will not be revised downward
or withdrawn entirely by such companies if, in the judgment of such companies, circumstances so warrant.

Requests for Information

  This financial report is designed to provide a general overview of CTTS’ finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be addressed to the TxDOT Financial Management Division
at the following address:

  Texas Department of Transportation
  Financial Management Division � Accounting Management Section
  125 East 11th Street
  Austin, Texas 78701�2483

























Page 22  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 23 ===
Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 23

=== PDF PAGE 24 ===
  Section Two  (Continued)
  Basic Financial Statements






































Page 24  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 25 ===
  Central Texas Turnpike System
  Statement of Net Position
  August 31, 2023 (Amounts in Thousands)

  A S SETS
  Cur rent Assets:
  Cash and Cash Equivalents:
  Cash and Cash Equivalents  $ 117,111
  Rest r icted:
  Cash and Cash Equivalents  443,589
  Receivables:
  Accou nts Receivable  26,054
  Interest and Dividends  287
  Due f rom Other Fu nds ( Note 8)  24,170
  Consumable Inventor y  267
  Total Cu r rent Assets  611,478




























































  Noncur rent Assets:
  Rest r icted:
  Investments  18,173
  Investments  27,189
  Capital Assets:
  Non�  Depreciable Capital Assets ( Note 2)  736,752
  Depreciable Capital Assets, Net ( Note 2)  1,858,176
  Total Noncu r rent Assets  2,640,290
  Total Assets  3,251,768




























































  DEFER R ED OUTFLOWS OF R ESOU RCES
  Defer red Outf  lows of Resou rces
  Loss on Bond Ref u nding  27,202
  Total Defer red Outf  lows of Resou rces  27,202




























































  LIABILITIES
  Cu r rent Liabilit ies:
  Payable s:
  Accounts  13,195
  Interest  4,153
  Due to Other Fu nds ( Note 8)  20,048
  Unear ned Revenues  16,604
  Revenue Bonds Payable ( Notes 4, 5)  74,743
  Subscr iption Obligations ( Note 5, 7)  41,495
  Total Cu r rent Liabilities  170,238




























































  Noncu r rent Liabilit ies:
  Revenue Bonds Payable ( Notes 4, 5)  2,800,264
  Subscr iption Obligations ( Note 5, 7)  67,418
  Total Noncu r rent Liabilities  2,867,682
  Tot al Liabilit ies  3,037,920




























































  DEFER R ED I NFLOWS OF R ESOU RCES
  Defer red Inf  lows of Resou rces
  Gain on Bond Ref u nding  23,675
  Total Defer red Inf  lows of Resou rces  23,675




























































  N ET POSI T ION
  Net Invest ment in Capital Assets  413,619
  Restricted for:
  Transpor tation � Operations and Maintenance  90,561
  Debt Ser vice  175,418
  Unrestricted  (462,223)
  Total Net Position  $ 217,375




























































  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.





Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 25

=== PDF PAGE 26 ===
  Central Texas Turnpike System
  Statement of Revenues, Expenses and Changes in Net Position
  For the Fiscal Year Ended August 31, 2023 (Amounts in Thousands)

  OPERATING REVENUES
  Toll Revenue � Pledged  $ 316,556
  Discounts and Allowances  (42,326)
  Fee Revenue � Pledged  28,368
  Other Sales Goods & Ser vices�  Pledged  42,578
  Total Operating Revenues  345,176

  OPER  AT I NG EX PENSES
  Salar ies  2,542
  Professional Fees and Services  22,454
  Travel  2
  Mater ials and Supplies  1,331
  Communication and Utilities  843
  Repairs and Maintenance  25,517
  Rentals and Leases  833
  Contracted Ser vices  69,396
  Adver t isi ng  980
  Depreciation and A mor tization  100,295
  Interest Expense  4
  Other Operating Expenses  10,020
  Total Operating Expenses  234,217
  Operating Income  110,959

  NONOPER ATI NG R EV EN U ES ( EX PENSES)
  L ea se Revenue  7,847
  Interest and Invest ment Income  23,059
  Net Increase in Fair Value of Invest ments  1,373
  Amor tization  11,405
  Interest Expense  (134,828)
  Bond Issuance Expenses  (32)
  Other Financing Fees  (45)
  Total Nonoperating Revenues (Expenses)  (91,221)
  Income before Capital Cont r ibutions and Transfers  19,738

  CA PITA L CONTR IBUTIONS A N D TR A NSFERS
  Capital Cont ributions  61
  Transfers In ( Note 8)  11,626
  Total Capital Cont r ibutions and Transfers  11,687
  Change in Net Position  31,425

  Net Position, September 1, 2022  185,950
  Net Position, Aug ust 31, 2023  $ 217,375

  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.







Page 26  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 27 ===
  Central Texas Turnpike System
  Statement of Cash Flows
  For the Fiscal Year Ended August 31, 2023 (Amounts in Thousands)

  CASH FLOWS FROM OPERATING ACTIVITIES
  Proceeds f rom Customers  $ 340,443
  Pay ments to Suppliers for Goods and Ser vices  (158,148)
  Net Cash Provided by Operating Activities  182,295

  CASH FLOWS FROM CA PITA L A N D R ELATED FI NA NCI NG ACTI V ITIES
  Proceeds f rom Land Revenue  8,153
  Pay ments for Pu rchase of Capital Assets  (11,550)
  Pay ments of Pr incipal on Debt and Other Liabilities  (64,069)
  Pay ments of Interest on Debt and Other Liabilities  (99,055)
  Pay ments for Inter f u nd Ser vices  (77)
  Net Cash ( Used) By Capital A nd Related Financing Activities  (166,598)

  CASH FLOWS FROM I N V ESTI NG ACTI V ITIES
  Proceeds f rom Sales and Mat u r ities of Invest ments  40,000
  Proceeds f rom Interest and Invest ment Income  22,999
  Net Cash Provided By Investing Activities  62,999

  Net Increase In Cash A nd Cash Equivalents  78,696

  Cash A nd Cash Equivalents � Begin ning  482,004
  Cash A nd Cash Equivalents � Ending  $ 560,700





































Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 27

=== PDF PAGE 28 ===
  Central Texas Turnpike System
  Statement of Cash Flows (concluded)
  For the Fiscal Year Ended August 31, 2023 (Amounts in Thousands)

  R ECONCILI ATION OF OPER ATI NG I NCOM E TO NET CASH
  PROV I DED BY OPER ATI NG ACTI V ITIES
  Operating Income  $ 110,959
  Adju st me nt s:
  Depreciation  100,295
  Other non�  cash items  (731)
  (I ncrease) i n Receivables  (6,092)
  Decrease in Inventories  208
  (Decrease) in Payables  (29,747)
  Increase in Due to Other Fu nds  4,869
  Decrease in Due f rom Other Fu nds  2,534
  Total Adjust ments  71,336
  Net Cash Provided by Operating Activities  $ 182,295

  NONCASH I N V ESTI NG, CA PITA L , A N D FI NA NCI NG ACTI V ITI ES:
  Subscr iption Liabilit y Paid by Other Fu nds  $ 10,509
  Net change in Fair Market Value of Invest ments  $ 1,373
  Accretion on Bonds Payable  $ (32,706)
  Amor tization of Bonds Payable  $ 11,405
  A mor tization of Defer red Inf  low/Outf  low  $ (1,005)
  Capital Cont ribution  $ 61

  The accompanying notes to the f inancial statements are an integ ral par t of this f inancial statement.




































Page 28  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 29 ===
Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 29

=== PDF PAGE 30 ===
Note 1 – Summary of Significant Accounting Policies  �������������������������������������������������������������������������������������������  31
Note 2 – Capital Assets  �������������������������������������������������������������������������������������������������������������������������������  35
Note 3 � Deposits, Investments, and Repurchase Agreements  �����������������������������������������������������������������������������������  36
Note 4 � Summary of Long�Term Liabilities  �������������������������������������������������������������������������������������������������������  38
Note 5 – Bonded Indebtedness  �����������������������������������������������������������������������������������������������������������������������  39
Note 6 – Retirement Plan and Postemployment Benefits other than Pensions  ����������������������������������������������������������������  41
Note 7 � Subscription�Based Information Technology Arrangements (SBITA)  ���������������������������������������������������������������  42
Note 8 – Interfund Activity  ���������������������������������������������������������������������������������������������������������������������������  42
Note 9 – Continuance Subject to Review  ����������������������������������������������������������������������������������������������������������  43
Note 10 – Commitments & Contingencies  ���������������������������������������������������������������������������������������������������������  43
Note 11 – Risk Financing and Related Insurance  �������������������������������������������������������������������������������������������������  44












































Page 30  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

=== PDF PAGE 31 ===
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

  The accompanying financial statements reflect the financial position of the Central Texas Turnpike System (CTTS). CTTS is an
enterprise fund of the Texas Department of Transportation (TxDOT), an agency of the state of Texas. The Texas Transportation Commission
(Commission), the governing body of TxDOT, has the authority to commit CTTS to various legal agreements.

  As of Aug. 31, 2023, CTTS consists of State Highway 130 Segments 1 through 4, State Highway 45 North, CTTS tolled portion of
Loop 1 and State Highway 45 Southeast. A portion of the costs of planning, designing, engineering, developing and constructing of the
first three elements was financed by bonds issued by the Commission. In fiscal 2013, State Highway 45 Southeast was transferred to
CTTS. In the future, at the Commission’s discretion, additional projects may be added to CTTS.

  CTTS does not have any employees, although labor costs are included in the cost of constructing, operating and maintaining CTTS.
When TxDOT staff members perform work on behalf of CTTS, the proportionate cost of that labor is reported as an expense of CTTS.
TxDOT’s risk financing and insurance programs apply to CTTS.

  The records of CTTS are maintained in accordance with the practices set forth in the provisions of the indentures of the outstanding
revenue bonds.  These practices are modeled after generally accepted accounting principles that are similar to private business enterprises.

Basis of Presentation and Basis of Accounting

  The accompanying financial statements were prepared in conformance with generally accepted accounting principles (GAAP) as
prescribed by the Governmental Accounting Standards Board (GASB). Financial reporting for CTTS is based on all GASB pronouncements.
The data in this report is combined and consolidated by the Texas Comptroller ’s Office with similar data from other state agencies and
universities in the preparation of the state of Texas Annual Comprehensive Financial Report (ACFR).

GASB Pronouncements and Implementation Guides Effective for Fiscal 2023

In fiscal 2023 CTTS adopted the following new GASB pronouncements and implementation guides:

  ●  GASB Statement No. 91, Conduit Debt Obligations. This statement provides a single method of reporting conduit debt obligations
  by issuers and eliminate diversity in practice. It clarifies the definition of a conduit debt; establishing that a conduit debt obligation is
  not a liability of the issuer; establishing standards for accounting and financial reporting of additional and voluntary commitments;
  and improving required note disclosures. The effective date of the statement was postponed from fiscal 2022 to fiscal 2023.

  ●  GASB Statement No. 94, Public�Private and Public�Public Partnerships and Availability Payments Arrangements. This statement
  addresses financial reporting issues related to public�private and public�public partnership arrangements (PPPs). A PPP is an
  arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to
  provide public services by conveying control of the right to operate or use a nonfinancial asset for a period of time in an exchange
  or exchange�like transactions. Some PPPs meet the definition of a service concession arrangement (SCA). This statement requires
  a transferor to recognize a receivable for installment payments and a deferred inflow of resources to account for a PPP in financial
  statements prepared using the current financial resources measurement focus. Governmental fund revenue would be recognized
  in a systematic and rational manner over the PPP term. An APA is an arrangement in which a government procures a capital
  asset or service by compensating an operator for activities that may include designing, constructing, financing, maintaining, and
  operating an underlying nonfinancial asset for a period of time in an exchange or exchange�like transaction. In contrast to PPPs,
  the other party to an APA is receiving compensation from the government based entirely on the asset’s availability and not the
  actual performance of a public service. The statement is effective fiscal 2023.

  ●  GASB Statement 96, Subscription�Based Information Technology Arrangements. This statement provides guidance on the
  accounting and financial reporting for subscription�based information technology arrangements (SBITAs) for government end
  users. A SBITA is a contract that conveys control of the right to use another party’s information technology software for a period
  of time in an exchange or exchange�like transaction. The statement establishes that a SBITA results in a right�to�use subscription
  asset, an intangible asset, and a corresponding subscription liability. The standards for SBITAs are based on the standards
  established in Statement 87, Leases. The statement is effective fiscal 2023.

  ●  GASB Statement 99, Omnibus 2022. Paragraphs 18�22, PPPs. Paragraphs 23�25, SBITAs. Effective fiscal 2023.

  ●  Implementation Guide 2020�1, Implementation Guidance Update 2020. Questions 4.19�4.21, Conduit Debt Obligations. Effective
  fiscal 2023.

  ●  Implementation Guide 2021�1, Implementation Guidance Update 2021. Questions 4.4�4.21 Leases. Effective fiscal 2023.

Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 31

=== PDF PAGE 32 ===
  These financial statements present only the financial position, changes in financial position and cash flows of CTTS. They are not
intended to, and do not, present fairly the financial position, changes in financial position or cash flows of TxDOT. The reporting period
is for the state fiscal year ended Aug. 31, 2023.

Fund Structure

  The activity of CTTS is reported in a proprietary fund.  Proprietary funds are accounted for using the economic resources measurement
focus and the accrual basis of accounting. Under the accrual basis, revenues are recognized when earned and expenses are recognized
at the time liabilities are incurred.

  A proprietary fund distinguishes operating from nonoperating items. Operating revenues and expenses result from providing services
or producing and delivering goods in connection with the proprietary fund’s principal ongoing operations. Operating expenses for an
enterprise fund include cost of sales and services, administrative expenses and depreciation on capital assets.

Assets, Deferred Outflows, Liabilities, Deferred Inflows and Net Position

Cash and Cash Equivalents

  For reporting purposes, cash and cash equivalents include cash on hand, cash in transit, cash in local banks, cash in the treasuries,
money market funds, state and local government investment pools, and cash equivalents. The statement of cash flows presents the change
in cash and cash equivalents during the fiscal year. Cash equivalents are defined as short�term, highly�liquid investments that are both
readily convertible to known amounts of cash and so near maturity they present insignificant risk of a decrease in value due to changes in
interest rates. Investments with an original maturity of three months or less and used for cash management rather than investing activities
are considered cash equivalents.

Investments

  Short�term investments are investments with a maturity greater than 90 days but less than one year at the time of purchase. Short�
term investments are recorded on an amortized cost basis. Long�term investments are investments with a maturity of one year or more
at the time of purchase. Long�term investments are recorded at fair value based upon quoted market prices as of the fiscal year end.
All investment income, including changes in the fair value of investments, is recognized as nonoperating revenue in the Statement of
Revenues, Expenses and Change in Net Position. See Note 3 for more information.

Accounts Receivable

  The accounts receivable asset is comprised of toll operations revenue earned but not yet received by CTTS of $96.3 million, net of
an allowance for doubtful accounts of $70.3 million, as of Aug. 31, 2023.

Interest and Dividends Receivable

  The amount of interest and dividends that has been earned, but which has not yet been received as of fiscal year end.

Due from Other Funds

  Due from other funds represents amounts due to other funds within TxDOT, for a variety of costs. See Note 8 for more information.

Consumable Inventory

  Consumable inventory consists of toll tags. The consumption method of accounting is used to account for inventory. The costs of
these items are expensed when the items are distributed to consumers.

Restricted Assets

  Restricted assets include monies or other resources restricted by legal or contractual requirements. These assets include proceeds of
enterprise fund notes/loans, revenue bonds and revenues set aside for statutory or contractual requirements. CTTS may receive funding
whose related expenditure is restricted to certain activities. In situations where both restricted and unrestricted resources are available to
cover expenses, CTTS will first expend the restricted resources and cover additional costs with unrestricted resources. CTTS reserves
the right to selectively defer the use of restricted assets.

Capital Assets

  Capital assets, which include buildings, construction in progress, infrastructure, intangible assets, land and permanent land�use rights,
are capitalized and reported in the financial statements.

Page 32  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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  Capital assets are assets with a cost above a set minimum capitalization threshold that, when acquired, have an estimated useful life
of more than one year. Land, permanent land�use rights and construction in progress do not have a capitalization threshold and are not
depreciated. The capitalization thresholds and useful lives of CTTS’ depreciable capital assets are as follows:

  Capitalization  of Assets
  Capitali zat ion  Est imated
  Ty  p  e  Threshold  Usefu l Li fe
  Buildings and Building Improvements  $100,000  22 yea r s
  Inf rast r uct ure, Depreciable  $500,000  40 yea r s
  Internally Developed Software  $1,000,000  5 yea r s
  Intangible R ight�  to�  Use Asset �  Subscr iption based IT A r rangements (SBITAs)$500,000  > 1  Ye  a  r

  All capital assets are capitalized at cost or estimated historical cost if actual historical cost is not available. Donated capital assets
are recorded at acquisition value at the date of donation. Costs of normal maintenance and repairs that do not add value to the asset or
materially extend the asset’s useful life are not capitalized.

  CTTS uses the depreciation approach for reporting both highways and highway bridges of the infrastructure assets. Under the
depreciation approach, infrastructure assets are depreciated over a 40�year life, and certain preservation costs are capitalized. The
capitalization threshold of $500,000 is used for both highway bridges and roadways.

  CTTS also holds three years of infrastructure costs in construction in progress at all times. At the fourth year, the first year is moved
to depreciable infrastructure. The three�year assumption is based on a 2.7 year contract life when using the weighted dollar analysis of
project costs and completion dates over the ten year history.

  Internally generated software costs are recorded as construction in progress during the application development stage of the project.
Development costs are moved to Computer Software the year the asset is placed into service. See Note 2 for more information on Capital
Assets.

  The intangible Right To Use (RTU) subscription asset is measured at the amount of the initial measurement of the subscription
liability, plus any payments made to the SBITA vendor before the commencement of the subscription term plus any payments made in
the implementation stage at or before the commencement of the subscription term. A RTU subscription asset should be amortized in a
systematic and rational manner over the shorter of the subscription term or the useful life of the underlying asset. The amortization of
the RTU subscription asset should be reported as an outflow of resources over the subscription term.  See Note 7 for more information.

Deferred Inflows of Resources and Deferred Outflows of Resources

  Deferred outflows of resources are a consumption of net position by the government that is applicable to a future reporting period.
Deferred outflows of resources increase net position, similar to assets. Loss on refunding debt is reported as deferred outflows of resources.

  Deferred inflows of resources are on acquisition of net assets by TxDOT that are applicable to a future reporting period. Deferred
inflows have a negative effect on net position, similar to liabilities.

Accounts Payable

  Accounts payable represents the liability for the value of assets or services received during the reporting period for which payment
is pending.

Interest Payable

  Interest payable represents the liability for the interest expense incurred during the reporting period for which payment is pending.

Due to Other Funds

  Due to other funds represents amounts due to other funds within TxDOT, for a variety of costs. See Note 8 for more information.

Unearned Revenue

  Unearned revenue is reported when cash or other assets are received prior to being earned.





Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 33

=== PDF PAGE 34 ===
Revenue Bonds Payable

  Revenue bonds payable are reported at par less unamortized discount or plus unamortized premium. Payables are reported separately
as either current or noncurrent in the statement of net position. See Notes 4 and 5 for more information

Subscription Obligations

  The GASB 96 requires the subscription obligations be recognized at the commencement of the SBITA term when the subscription
asset is placed into service. The subscription liability should be initially measured at the present value of subscription payments expected
to be made during the subscription term.

Net Position

  Proprietary funds report net position as the residual amount in a statement of net position. The categories of net position reported in
this report include:

Net Investment in Capital Assets

  Net investment in capital assets consists of capital assets (net of accumulated depreciation), and deferred outflow of resources, reduced
by outstanding balances for bonds, notes and other debt that are attributed to the acquisition, construction or improvement of those assets.

Restricted

  Restricted net position results when constraints placed on net position’s use are either externally imposed by creditors, grantors,
contributors and the like, or imposed by law through constitutional provisions or enabling legislation. The restricted component of net
position represents restricted assets reduced by liabilities related to those assets.

Unrestricted

  Unrestricted net position consists of the assets and liabilities that are not included in the determination of net investment in capital
assets or the restricted component of net position.

Revenues, Expenses, and Transfers

Operating Revenues

  CTTS operating revenues for fiscal 2023 is mainly comprised of $274.2 million in toll revenue. This represents $316.6 million in
gross toll revenue, less a decrease of allowance for doubtful accounts of  $42.3 million. CTTS also earned toll fees of $28.4 million and
other sales revenue of $42.6 million.

Operating Expenses

  Operating expenses include expenses incurred in operating the toll roads and the customer service center, and depreciation and
amortization on capital assets.

Nonoperating Revenues/Expenses

  Nonoperating revenues are mainly comprised of interest and investment revenue and lease revenue. Nonoperating expenses are any
expenses not classified as operating, including bond interest expense and accretion on capital appreciation bonds

Capital Contributions

  Capital contributions represent the capital asset contribution made from the State Highway Fund to CTTS. The capital contribution
made from a governmental fund to a proprietary fund should be reported as capital contribution, instead of transfers, on the proprietary
fund financial statements. No transfers should be reported on the governmental fund financial statements.

Transfers

  Transfers In/Out represents the flow of assets between funds. See Note 8 Interfund Activity for more information.






Page 34  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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NOTE 2 – CAPITAL ASSETS

  The table below presents the composition of CTTS’ capital assets, reclassifications, additions and deletions during fiscal 2023. The
reclassifications column represents completed construction projects, and transfers of capital assets between the governmental and business�
type activities of TxDOT, including Subscription�Based Information Technology Arrangements (see Note 7 for more information). The
additions column includes current year purchases, depreciation and amortization. The deletions column represents assets removed during
the current fiscal year via sale or disposition.

 Capital Assets Activity
 For the fiscal year ended August 31, 2023
 (Amounts in Thousands)
  Balance  Reclass-  Balance
  09/1/2022  if ications  Additions  Deletions  08/31/2023

 Non-Depreciable Assets & Non-Amor t i zable Assets
 Land  $ 668,831  $  $  $ (306) $ 668,525
 Constr uction in Progress  100,138  (62,808)  11,431  48,761
 Land Use R ights  19,466  19,466
  Total Non�  Depreciable Assets  788,435  (62,808)  11,431  (306) 736,752

 Depreciable Assets
 Buildi ngs  8,360  8,360
 Infrastr uct ure  2,328,853  62,870  2,391,723
  Total Depreciable Assets  2,337,213  62,870  0  0  2,400,083

 Less Accumulated Depreciation for:
 Buildi ngs  (5,923)  (361)  (6,284)
 Infrastr uct ure  (604,864)  (56,024)  (660,888)
  Total Accumulated Depreciation  (610,787)  0  (56,385)  0  (667,172)
 Depreciable Assets, Net  1,726,426  62,870  (56,385)  0  1,732,911

 Intangible Capital Assets - Amor t i zable
 Sof t wa re  51,063  51,063
  Total A mor tizable Assets  51,063  0  0  0  51,063

 Less Accu mulated A mor tization for:
 Sof t wa re  (11,064)  (10,212)  (21,276)
  Total Accu mulated A mor tization  (11,064) 0  (10,212) 0  (21,276)
 Amor tizable Assets, Net  39,999  0  (10,212) 0  29,787

 Intangible R ight to Use ( RTU ) Assets - Amor t i zable
 Subscriptions  129,176  129,176
 Total A mor tizable RT U Assets  0  129,176  0  0  129,176

 Less Accu mulated A mor tization for:
 Subscriptions  (33,698)  (33,698)
  Total Accu mulated A mor tization RT U Assets 0  0  (33,698) 0  (33,698)
 A mor tizable Intangible RT U Assets, Net  0  129,176  (33,698) 0  95,478

 Total Capital Assets, Net  $ 2,554,860  $ 129,238  $ (88,864) $ (306) $ 2,594,928





Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 35

=== PDF PAGE 36 ===
NOTE 3 – DEPOSITS, INVESTMENTS, AND REPURCHASE AGREEMENTS

  CTTS is authorized by statute to make investments following the “prudent person rule”. CTTS has complied, in all material respects,
with statutory authorization, bond documents, constraints and commission policies during the period.

Deposits

  The following amounts consist of all cash and cash equivalents in local banks. These amounts are included on the combined statement
of net position as part of the “cash and cash equivalents” accounts.

  Cash and Cash Equivalents - Carrying Amount
  August 31, 2023 (Amounts in Thousands)
  Cur rent Assets Cash  $ 28,746

  Cash and Cash Equivalents � Car r ying A mou nt  $ 28,746


Investments

Measurement

  CTTS categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles.
The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The three�tiered fair value hierarchies are as
follows.

  ●  Level 1 – Quoted prices in active markets for identical investments

  ●  Level 2 – Significant other observable inputs other than quoted market prices

  ●  Level 3 – Significant unobservable inputs

As of Aug. 31, 2023, the measurements of CTTS’s investments are summarized below:

  Investment Fair Value and Maturities
  August 31, 2023 (Amounts in Thousands)

  Fair Value Hierarchy  Other Measurement
  Investment Type  Level  1  Amor t i zed Cost  To  t  a  l


  Money Market Mut ual Fu nds  $  $ 45,602  $ 45,602
  Gover n ment Sponsored Entities  45,362  45,362
  Gover n ment I nvest ment Pools  389,420  389,420
  Repu rchase Ag reements  96,932  96,932

 Total Investments  $ 45,362  $ 531,954  $ 577,316


  Government sponsored entities investments of $45.4 million with maturities of one year or more are valued at quoted market prices
(Level 1 input).

  As of Aug. 31, 2023, CTTS also has the following types of investments which are excluded from measurement at fair value according
to GASB 72.

  ●  Investments in money market mutual funds, government investment pools and repurchase agreements of $532.0 million with
  maturities less than one year are valued at amortized cost.




Page 36  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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Custodial Credit Risk - Investments

  Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty, the Commission will not be able to
recover the value of its investments or collateral securities that are in the possession of an outside party. The Commission’s investment
policy states that all securities purchased by the Commission shall be designated as assets of the Commission and shall be protected
through the use of a third�party custody/safekeeping agent, which may be a Trustee.

Credit Risk - Investments

  Direct credit risk for investments is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The
investment policy prohibits the Commission from entering into long�term investment agreements or other ongoing investment transactions
with a final maturity or termination date of longer than six months with any financial institution that initially has a long� term rating
category of less than “A” and that does not have at least one long�term rating of at least “AA” by a nationally recognized statistical rating
organization (NRSRO). All investments made by the Commission have been made through a firm on the then�current list of qualified
financial institutions approved by the Commission.

  The Commission’s policy does not limit the amount of investment in obligations of the United States or its agencies.

  As of Aug. 31, 2023, CTTS’ investments had the following ratings:

  Investment Credit Ratings
  August 31, 2023 (Amounts in Thousands)

  Standard
  Investment Type  Valuat ion  M o o d y’s  &  Po o r ’s  Fitch
  Money Market Mut ual Fu nds:
  J PMorgan US Gover n ment Fu nd  $ 23,902  Aaa�mf  AAAm  AAAmmf
  Morgan Stanley Instl Liquidit y Gover n ment Fu nd  21,700  Aaa�mf  AAAm  AAAmmf
  Gover n ment Sponsored Entities:
  Federal Far m Credit Ban ks Fu nding Cor poration  9,015  Aaa  A  A+  A  A+
  Federal Home Loan Mor tgage Cor poration  36,347  Aaa  A  A+  A  A+
  Gover n ment I nvest ment Pools:
  Te  x  P  o  o  l  P  r  i  m  e  389,420  NR  AAAm  NR
  Repu rchase Ag reements:
  Repo (TTSTC)  96,932  NR  AAAf  NR
  To  t  a  l  $ 577,316

  N R= Not Rated

Concentration of Credit Risk

  Concentration of credit risk is the risk of loss attributed to the magnitude of a government’s investment in a single issuer. Assets held
shall be diversified to eliminate the risk of loss resulting from over�concentration of assets in a specific maturity, a specific issuer or a
specific class of securities. As of Aug. 31, 2023, the following investments exceeded five percent of the total portfolio: Federal Home
Loan Mortgage Corporation, TexPool Prime and the Repurchase Agreement.

  The Commission addresses diversification in the Commission’s Investment Policy. Diversification strategies shall be determined and
revised periodically by the investment officer.

Interest Rate Risk

  Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Commission has
addressed interest rate risk in its various accounts by matching as closely as possible anticipated cash flows with income and return of
principal on investments. Investment maturities are noted in the investment table. Approximately 92.1 percent of the investments mature
within one year. Market value fluctuation of the overall portfolio is minimized by keeping the weighted average maturity low.




Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 37

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NOTE 4 – SUMMARY OF LONG-TERM LIABILITIES

  As of Aug. 31, 2023, CTTS had seven bond issues and one subscription obligation outstanding. Additional detail is provided in the
sections that follow. As detailed below, the following changes occurred in long�term liabilities during the year ended Aug. 31, 2023.

  Long-Term  Liabilities Activity
  For the Fiscal Year Ended August 31, 2023 (Amounts in Thousands)

  Beginning  Ending
  Balance  Balance  Due Within  A  mou  nt  s  D  ue
  09/01/2022  Adjustments*  Additions**  Reduct ions  08/31/2023  One Year  Thereafter

  Revenue Bonds Payable  $ 2,683,020  $ (11,404)  $ 32,706  $ (54,315)  $ 2,650,007  $ 74,743  $ 2,575,264
  Revenue Bonds � Direct Placements  225,000  225,000  225,000
  Right�  to�  Use Subscription
  Obligat ions  129,176  (20,263)  108,913  41,495  67,418
  To  t  a  l  $ 2,908,020  $ 117,772  $ 32,706  $ (74,578)  $ 2,983,920  $ 116,238  $ 2,867,682

  * Includes cu r rent year amor tization of premiu ms and discou nts.
  ** Includes cu r rent year accretion.

Pledged Future Revenues

  Pledged revenues are those specific revenues that are formally committed to directly secure the payment of bond debt service. The
table below provides information on pledged revenue and pledged future revenue of the CTTS revenue bonds.

  Pledged Future Revenue (Amounts in Thousands)

  Pledged Revenue Required for Fut u re Pr incipal and Interest on Existing Debt  $ 4,312,949
  Ter m of Com mit ment Ending  8  / 15  /  2  0  4 2
  Percentage of Revenue Pledged  97.19%
  Cu r rent Year Pledged Revenue  $ 365,817
  Cu r rent Year Pr incipal and Interest Paid  $ 151,654






























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NOTE 5 – BONDED INDEBTEDNESS

Revenue Bonds

  Transportation Code, Chapter 228 Subchapter C authorizes the Commission to issue revenue bonds to pay a portion of the costs
of planning, designing, engineering, developing and constructing the CTTS. The bonds are payable from and secured solely by a first
and second lien on, as applicable, and pledge of the trust estate. The trust estate consists of all project revenues and all project earnings
including investment earnings deposited into the revenue fund, construction fund (except for any amounts held in a sub�account containing
monies derived from the state highway fund or any monies received by the Commission that are restricted to another use), the debt service
fund, the debt service reserve fund, the rate stabilization fund, and the general reserve fund.

  In an event of default under the terms of the Indenture of Trust dated as of July 15, 2002, the Trustee may take the following actions
and upon the written request of the owners of not less than 20 percent in principal amount of outstanding obligations shall proceed to:

(i)  Protect and enforce its rights and the rights of the owners under the state law and the Indenture by such suits, actions or special
  proceedings in equity or at law, or by proceedings in the office of any board or officer having jurisdiction, either for mandamus or
  the specific performance of any covenant or agreement contained in the Indenture or in aid or execution of any power granted by the
  Indenture or for the enforcement of any proper legal or equitable remedy, as the Trustee, being advised by counsel, shall deem most
  effectual to protect and enforce such rights.

(ii)  In the enforcement of any remedy under the Indenture the Trustee shall be entitled to sue for, enforce payment of and receive any
  and all amounts then or during any event of default becoming, and at any time remaining, due from the Commission.

  Miscellaneous Bond Information
  (Amounts in Thousands)
  Maturit ies
  Bonds Issued  Range of  First  Last  Fi rst Cal l
  Descript ion of Issue  to Date  Date Issued  Interest Rates  Ye  a  r  Ye  a  r  Date
  First Tier Revenue Bonds Ser ies 2002�  A
  Non�  Callable Capital Appreciation Bonds*  $ 792,168  08/29/2002  4.47%  5.75 %  2 012  2030  n  /a
  Callable Capital Appreciation Bonds  325,494  08/29/2002  6.0 0%  6 .10 %  2025  2038  08/15/2012
  First Tier Revenue Ref u nding Bonds Ser ies 2012�  A  585,330  11/27/2012  4.0 0%  5.0 0 %  2038  2  0  41  08/15/2022
  First Tier Revenue Ref u nding Bonds Ser ies 2015�  B
  Cu r rent Interest Bonds + Ter m Bond*  198,025  02/04/2015  5.0 0 %  5.0 0 %  2 032  2037  08/15/2024
  Capital Appreciation Bonds  134,181  02/04/2015  4.36%  4.38%  2036  2037  08/15/2024
  Second Tier Revenue Ref u nding Bonds, Ser ies 2015�  C  1,157,320  02/04/2015  5.0 0 %  5.0 0 %  2022  20 42  08/15/2024
  First Tier Revenue Ref u nding Bonds Ser ies 2020�  A  179,475  03/05/2020  3.0 0 %  5.0 0 %  2039  2040  08/15/2030
  First Tier Revenue Ref u nding Var iable Rate Bonds
  Ser ies 2020�  B  225,000  03/05/2020  VA  R  VA  R  20 42  20 42  **
  First Tier Revenue Ref u nding Bonds Taxable Ser ies
  2020�  C  279,305  03/05/20  3.03%  3.03%  2  0 31  2  0  41  08/15/2030

  To  t  a  l  $ 3,876,298

  * Bonds issued to date include interest accreted to pr incipal.
  ** Bonds are subject to redemption pr ior to their respective mat u r ities at the option of the Com mission.

  Neither the state, Commission, TxDOT nor any other agency or political subdivision of the state is obligated to pay the principal,
premium, discount or interest on the CTTS revenue bonds except from the trust estate. The bond indenture does not create a mortgage
on the CTTS.










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  Debt service requirements for the First Tier Revenue Bonds as of Aug. 31, 2023, are detailed in the following tables:

  Debt Service Requirements - Revenue Bonds (Amounts in Thousands)
  Revenue Bonds
  Ye  a  r  Principal  Interest  To  t  a  l
  2024  $ 63,380  $ 88,752  $ 152,132
  2025  72,655  88,319  160,974
  2026  87,030  87,707  174,737
  2027  98,405  87,216  185,621
  2028  105,225  86,513  191,738
  2029� 2033  644,255  404,432  1,048,687
  2034�  2038  943,485  249,107  1,192,592
  2039� 2043  722,940  63,348  786,288
  2,737,375  1,155,394  3,892,769
  Unamor tized Accretion  (227,194)  (227,194)
  Unamor tized Premiu m  139,826  139,826
  To  t  a  l  $ 2,650,007  $ 1,155,394  $ 3,805,401


  Debt Service Requirements - Revenue Bonds (Amounts in Thousands)
  Revenue Bonds - Direct Placements
  Ye  a  r  Principal  Interest*  To  t  a  l
  2024  $  $ 10,889  $ 10,889
  2025  10,386  10,386
  2026  10,395  10,395
  2027  10,395  10,395
  2028  10,404  10,404
  2029� 2033  51,966  51,966
  2034�  2038  51,975  51,975
  2039� 2043  225,000  39,255  264,255
  To  t  a  l  $ 225,000  $ 195,665  $ 420,665

  * Ser ies 2020�  B debt ser vice requirements are calculated with interest rate of 4.62 percent which is the interest rate
  repor ted at Aug. 31, 2023.


Defeased Bonds

  The Commission has defeased various bond issues by placing funds in irrevocable trusts with external financial institutions to provide
for all future debt service payments on the old bonds. As of Aug. 31, 2023, the amount of CTTS defeased bonds that remain outstanding
are presented in the following table:

  Defeased Bonds Outstanding (Amount in Thousands)
  Descript ion  P  a  r  Va  l  u  e
  Revenue Bonds
  Ser ies 2002�  A Capital Appreciation Bonds*  $ 15,312
  To  t  a  l  $ 15,312

  * Includes $10,600 of accreted interest.







Page 40  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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NOTE 6 - RETIREMENT PLAN AND POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS

  CTTS, an enterprise fund of the Texas Department of Transportation (TxDOT), is part of TxDOT’s reporting entity. CTTS does not
have any employees and does not make contributions to any retirement plans or other postemployment benefits (OPEB) plans. TxDOT
employees provide all accounting and administrative services for CTTS. Those employees are members of the Employee Retirement
System of Texas defined benefit pension plan (ERS Plan) and the State Retiree Health Plan (SRHP). CTTS is not obligated in any form
for the funding of the pension benefits provided by the ERS Plan or the postemployment benefits provided through the SRHP. Allocation
of the pension and OPEB liabilities and expense for CTTS is deemed unnecessary and not required. The details are disclosed in the
TxDOT’s Annual Comprehensive Financial Report for the pension plan in Note 8 and the OPEB plan in Note 10.






























































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NOTE 7 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITA)

  TxDOT implemented GASB Statement No. 96 Subscription Based Information Technology Arrangements during fiscal 2023, and
recognized one agreement in support of the Texas Department of Transportation Tolls Back Office System (TxBOS). The initial term is
for one year from June 30, 2022 to June 29, 2023 with the option to renew for three additional one�year periods. The subscription asset
and accumulated amortization are $129.2 million and $33.7 million.



  Below are the principal and interest requirements:

  Future Subscription Payments
  (Amounts in Thousands)
  Total Future Minimum
  Ye  a  r  Principal  Interest  Subscript ion Payments
  2024  $ 41,495  $ 2,613  $ 44,108
  2025  36,326  1,485  37,811
  2026  31,092  418  31,510
  To  t  a  l  $ 108,913  $ 4,516  $ 113,429

NOTE 8 – INTERFUND ACTIVITY

  Transfers In/Out represents the flow of assets (cash or goods) between CTTS and other funds of TxDOT. In fiscal 2023, CTTS
transfers in from other funds were $11.6 million.

  Due To and Due From Other Funds represent amounts due to or due from other funds within TxDOT, for a variety of costs. The State
Highway Fund (SHF) is the major governmental fund of TxDOT.  The Grand Parkway Transportation Corporation (GPTC) is a blended
component unit of TxDOT.

  At the end of fiscal 2023, the net Due To and Due From Other Funds were as detailed in the following tables:

  Interfund Balance
  August 31, 2023 (Amounts in Thousands)

  Categor y  Due To ( From)
  Due to SH F � Operations and Maintenance  $ 21,965
  Due f rom SH F � Veterans Waiver  (801)
  Due f rom SH F � Transaction fees  (1,116)
  Net due to SH F f rom CTTS  $ 20,048























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  Due from Other Funds totaled $24.2 million, as detailed in the following table:

  Interfund Balance
  August 31, 2023 (Amounts in Thousands)

  Due From
  (  T x Ta  g  To  l  l
  Categor y  Collection Acct)
  Due From SH F (TxTag Toll Collection Accou nt)  20,534
  $ 20,534


  Categor y  Due From GPTC
  Due From GPTC � t ransaction fees  3,636
  $ 3,636


  The $20.5 million balance due from the SHF (TxTag Toll Collection Account) is comprised of prepaid tolls and fees held in toll
custody funds as of Aug. 31, 2023. Also included are toll and fee revenues collected but not transferred from the SHF as of Aug. 31, 2023.


NOTE 9 – CONTINUANCE SUBJECT TO REVIEW
  Under the current Texas Sunset Act, TxDOT will be abolished effective Sept. 1, 2029, unless continued in existence by the 91st
Legislature as provided by the Act. If abolished, TxDOT may continue until Sept. 1, 2030 to wind down its operations. In the event that
TxDOT is abolished pursuant to the Texas Sunset Act or other law, Texas Government Code, Section 325.017(f), acknowledges that such
action will not alter the obligation of the abolished agency.

NOTE 10 – COMMITMENTS & CONTINGENCIES

Lawsuits and Claims

  CTTS is contingently liable in respect to lawsuits and claims in the ordinary course of business which, in the opinion of TxDOT’s
management, will not have a material adverse effect on the financial statements.

Arbitrage

  Rebatable arbitrage defined by Internal Revenue Code (IRC), Section 148, is earnings on tax exempt bond proceeds in excess of the
yield on the bond. The rebatable arbitrage must be repaid to the federal government. Pursuant to the applicable bond Indenture of Trust, a
Rebate Fund will be established under the Indenture to which deposits will be made upon the determination by a verification agent that a
rebate payment may be due. The amount of rebate due to the federal government is determined and payable during each five�year period
and upon final payment of the tax�exempt bonds. IRC Section 148 also provides for certain rebate exceptions, including an exception if
certain spend�out requirements of the bond proceeds are met. TxDOT estimates that rebatable arbitrage liability, if any, will be immaterial
to the agency’s overall financial condition. No arbitrage liability has been determined or payable for the current reporting period.

Significant Contract Commitments

  A contract was entered into with Faneuil, now TTEC, effective November 15, 2019 for the provision of toll customer services. Also,
contracts have been entered into with Accenture to provide programming services.

  Disclosure of the contract commitments as of Aug. 31, 2023 is displayed below:









Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System  Page 43

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  CTTS Contract Commitments
  August 31, 2023  (Amounts in Thousands)

  Contract  Cash Paid  Remaining
  Contractor  Project Descript ion  Commitment  through 8/31/23  Commitment
  Accenture  Programming Services  $ 60,000  $ 48,376  $ 11,624
  TTEC Gover n ment Solutions  Customer Ser vice Operations Provider  267,027  156,339  110,688
  To  t  a  l  $ 327,027  204,715  122,312



NOTE 11 - RISK FINANCING & RELATED INSURANCE

  The Central Texas Turnpike System (“CTTS”) is a toll system financed by the Texas Transportation Commission and owned and
operated by TxDOT. CTTS does not have any employees. TxDOT provides all accounting, debt financing and administrative services.

  TxDOT is exposed to a wide range of risks due to the size, scope and nature of its activities. Some of these risks include, but are not
limited to, property and casualty losses, workers’ compensation and health benefit claims, theft, damage of assets, etc. CTTS self� insures
through funds on deposit within the Rate Stabilization Fund. The amount of funds held on deposit in the rate stabilization fund for self�
insurance has been certified as actuarially sound by AMI Risk Consultants, Inc. To date, CTTS has not had to draw upon the funds in the
rate stabilization fund to settle any claims and therefore settlements have not exceeded self�insurance coverage.

  During the fiscal year, the Texas Transportation Commission maintained a Not�for  �Profit Entity and Directors, Officers Liability
Insurance Policies Including Employment Practices Claims Coverage in connection with the CTTS.











































Page 44  Fiscal Year Ending August 31, 2023 � Central Texas Turnpike System

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