Audit of the Cape Ann Transportation Authority
November 2, 2018 · Cape Ann Transportation Authority · Read the full official report on mass.gov ↗ · official site ↗
Published November 2, 2018 Audit covers July 1, 2015 – June 30, 2017 Under Suzanne M. Bump · 2011–2023
source
“CATA did not submit required financial information to the Commonwealth to be made available to the public on a searchable website.”
Read the plain-English breakdown
This is a state performance audit of the Cape Ann Transportation Authority, the public transit agency serving Cape Ann communities, covering July 1, 2015 through June 30, 2017.
“In accordance with Section 12 of Chapter 11 of the Massachusetts General Laws, the Office of the State Auditor has conducted a performance audit of the Cape Ann Transportation Authority (CATA) for the period July 1, 2015 through June 30, 2017.”
Auditors checked whether CATA kept up with vehicle maintenance, reported required financial records for public access, and properly controlled employee use of non-passenger vehicles.
“We also examined CATA’s use of its non-revenue-producing vehicles, as well as its compliance with the General Laws regarding providing its financial records to the Secretary of Administration and Finance for public disclosure.”
The issues matter because public transit agencies use public money and public vehicles, so residents should be able to see spending information and trust that vehicles are used for official business.
“Therefore, CATA did not allow the Commonwealth to give the public a sufficient level of transparency regarding CATA’s operations, including its overall financial health and the nature and extent of its expenses.”
For an ordinary resident or rider, the audit says CATA’s required vehicle maintenance was up to date, but the agency needed to be more transparent about finances and more careful about tracking staff vehicle use.
“Did CATA maintain a cost maintenance log for each vehicle to ensure that preventive maintenance for vehicles and equipment for transporting passengers with disabilities under the requirements of the Americans with Disabilities Act of 1990 was up to date per Federal Transit Administration (FTA) guidelines?”
The bottom line is that auditors found no problem with preventive maintenance, but found problems with financial reporting and documentation of non-revenue vehicle use.
“CATA did not properly document the use of its non-revenue-producing vehicles by its employees.”
CATA said it would work with state officials on financial reporting timelines and would revise its vehicle-use policies, logs, and monitoring controls.
“CATA will revise its policy and procedures for the oversight and use of its non-revenue vehicles to incorporate best practices from other RTAs and MassDOT.”
The audit is significant because CATA received public funding, served more than 54,000 people in its service area, and had weaknesses in transparency and vehicle-use controls.
“CATA operates local fixed-route and demand-response services within the 80-square-mile Gloucester area, serving a population of more than 54,000.”
“Non-revenue-producing vehicles” means agency vehicles that are not used to carry paying passengers, but are used temporarily by CATA employees for agency business.
“Non-revenue-producing vehicles are light-duty vehicles for temporary use by CATA employees for agency-related business.”
What the Auditor checked
- Complied Did CATA maintain a cost maintenance log for each vehicle to ensure that preventive maintenance for vehicles and equipment for transporting passengers with disabilities under the requirements of the Americans with Disabilities Act of 1990 was up to date per Federal Transit Administration (FTA) guidelines?
- Did not comply Did CATA submit all required financial records to the Commonwealth for inclusion on the Commonwealth’s searchable website as required by Section 14C of Chapter 7 of the General Laws?
- Did not comply Did CATA properly manage the use of its non-revenue-producing vehicles?
What the Auditor found
Why it matters: The public lacked sufficient transparency into CATA's operations, financial health, and expenses.
Standard: Section 14C of Chapter 7 of the Massachusetts General Laws requires agencies, including quasi-public independent entities, to report financial data to the Secretary of the Executive Office for Administration and Finance for inclusion on the searchable website. ( Section 14C of Chapter 7 of the Massachusetts General Laws; Section 14C(e) of Chapter 7 of the Massachusetts General Laws )
2 recommendations
- CATA should develop formal policies and procedures for submitting this required information to EOAF.agency: agreed
- CATA should establish monitoring controls to ensure that the staff members assigned to this task adhere to these policies and procedures.agency: agreed
Agency response & Auditor reply
Agency: "CATA will develop its policy and monitoring controls once the timelines and final delivery criteria have been agreed to with the Office of the Comptroller."
Auditor: "Based on its response, CATA is taking measures to ensure that it reports this required information to EOAF."
Why it matters: There is a higher-than-acceptable risk that vehicles could be used for non-business purposes without detection.
Standard: MassDOT Motor Vehicles Policy No. P-D0032-01, dated October 5, 2016, represents a best practice for documenting use of non-revenue-producing vehicles.
2 recommendations
- CATA should establish policies and procedures, consistent with those established by MassDOT, for its non-revenue-producing vehicles that require a log documenting vehicle use, operator information, destination and purpose, odometer readings, condition, damage, and maintenance issues.agency: agreed
- CATA should ensure that these policies and procedures include monitoring controls to ensure that they are adhered to.agency: agreed
Agency response & Auditor reply
Agency: "CATA will revise its policy and procedures for the oversight and use of its non-revenue vehicles to incorporate best practices from other RTAs and MassDOT."
Auditor: "Based on its response, CATA is taking measures to address our concerns in this area."
More audits of this entity
Other Office of the State Auditor reports on Cape Ann Transportation Authority .
- Cape Ann Transportation AuthorityTransit Authority · December 15, 2011