Mass Transit Grants: Improved Management Could Reduce Misuse of Funds in UMTA's Region IX
RCED-92-7
Published: Nov 15, 1991. Publicly Released: Nov 15, 1991.
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Highlights
GAO reviewed the Urban Mass Transportation Administration's (UMTA) management of $34.5 billion in active grants, focusing on: (1) compliance with federal requirements by selected grantees in UMTA Region IX; and (2) the effectiveness of the region's oversight of grantees' compliance with federal requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Urban Mass Transportation Administration | Until grantee certification can be shown to be reliable, UMTA Region IX should reduce its reliance on grantees' promises and increase its verification of actual performance. Therefore, the Administrator, UMTA, should direct the Manager, Region IX, to use progress and financial reports to identify cost, schedule, and performance problems. |
Closed – Implemented
On July 14, 1992, DOT notified GAO that FTA has modified its Grants Management Information System to track quarterly progress report submission. The restructured triennial review process specifically includes the use of quarterly report information for the recommended purpose. Also, FTA headquarters and regional project managers have been directed to identify cost and performance problems.
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| Urban Mass Transportation Administration | Until grantee certification can be shown to be reliable, UMTA Region IX should reduce its reliance on grantees' promises and increase its verification of actual performance. Therefore, the Administrator, UMTA, should direct the Manager, Region IX, to ensure that close-out reviews are conducted promptly upon completion of a project and that they verify that products were delivered as agreed, funds were used appropriately, and federal requirements were met. |
Closed – Not Implemented
FTA is expected to complete action in late 1994. Ongoing work is addressing the extent of FTA actions on this recommendation.
|
| Urban Mass Transportation Administration | Until grantee certification can be shown to be reliable, UMTA Region IX should reduce its reliance on grantees' promises and increase its verification of actual performance. Therefore, the Administrator, UMTA, should direct the Manager, Region IX, to verify that inadequate grantee performance is corrected, and, if it is not, take appropriate enforcement action to obtain compliance. |
Closed – Not Implemented
FTA is expected to complete action in late 1994. Ongoing work is addressing the extent of FTA actions on this recommendation.
|
| Urban Mass Transportation Administration | Until grantee certification can be shown to be reliable, UMTA Region IX should reduce its reliance on grantees' promises and increase its verification of actual performance. Therefore, the Administrator, UMTA, should direct the Manager, Region IX, to require that triennial reviews evaluate, analyze, and test grantee compliance with federal requirements. |
Closed – Not Implemented
The "Triennial Review Handbook" has accomplished the objective of stressing data evaluation and analysis. Action will be completed after GAO verifies that triennial reviews evaluated, analyzed, and tested compliance with federal requirements. GAO work in this area is ongoing.
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| Urban Mass Transportation Administration | Until grantee certification can be shown to be reliable, UMTA Region IX should reduce its reliance on grantees' promises and increase its verification of actual performance. Therefore, the Administrator, UMTA, should direct the Manager, Region IX, to review compliance on existing grants and resolve significant noncompliance issues before awarding new grants. |
Closed – Not Implemented
FTA was expected to complete action in late 1994. Ongoing work was addressing the extent of FTA actions on this recommendation.
|
| Urban Mass Transportation Administration | To improve the reliability of grantee certifications and minimize the vulnerability of mass transit grants to waste and mismanagement, the Administrator, UMTA, should direct the Manager, Region IX, to ensure that all grantees have management control systems that adequately account for and protect federal mass transit investments. To achieve this, UMTA could verify the adequacy of grantees' systems. However, if UMTA determines that resource limitations would preclude the timely discharge of this function, it could request independent verification by state audit entities or require grantees to provide verification of their systems by independent public accounting firms to be eligible for UMTA grants. |
Closed – Not Implemented
FTA was expected to complete action in late 1994. Ongoing work was addressing the extent of FTA actions on this recommendation.
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Topics
Federal aid for transportationFunds managementGrant administrationGrant monitoringGrants to local governmentsInternal controlsMass transitProgram abusesUrban transportationFederal property