Mass Transit: Project Management Oversight Benefits and Future Funding Requirements
RCED-00-221
Published: Sep 15, 2000. Publicly Released: Oct 16, 2000.
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Highlights
Pursuant to a congressional request, GAO reviewed the Federal Transit Administration's (FTA) oversight of major capital projects, focusing on: (1) how FTA oversees major capital projects; (2) how financial capacity assessments are used; (3) what types of benefits to grantees and FTA have resulted from FTA's project oversight activities; and (4) how these oversight activities are funded.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Transportation | To address FTA's oversight needs, the Secretary of Transportation should direct the Administrator, FTA, to develop a plan to: (1) determine the amount of funds needed to maintain an adequate level of oversight for all projects requiring oversight, the level of funding that likely will be available for this purpose, and any resultant shortfall in funds; (2) identify options to cover any projected funding shortfalls; and (3) identify steps to respond to any shortfalls that may occur. The Secretary should also communicate this plan to Congress. |
Closed – Implemented
In FTA's fiscal year 2002 budget submission to the Congress, the agency estimated that there would be a $5 million shortfall in fiscal 2002. To meet this shortfall, FTA proposed legislation to increase the statutorily limited set-aside of funds for oversight from 0.75 percent to 1.0 percent. According to FTA, this additional $6.9 million would cover the projected shortfall and also allow FTA to increase its activities in the financial management oversight program. The subsequent House Committee Report included language directing FTA to use at least $28.6 million for project management oversight and $4.6 million for financial management oversight in fiscal year 2002. This effectively increases funding for oversight of major capital transit projects to 1.0 percent, as requested in FTA's budget.
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Topics
Construction costsCost controlCost overrunsFederal aid for transportationFinancial analysisGrant monitoringMass transitMass transit fundingSchedule slippagesSubway constructionSubway trains