Audit of the Franklin Regional Transit Authority
October 5, 2018 · Franklin Regional Transit Authority · Read the full official report on mass.gov ↗
Published October 5, 2018 Audit covers July 1, 2015 – June 30, 2017 Under Suzanne M. Bump · 2011–2023
source
“FRTA 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 Franklin Regional Transit Authority, which provides public transportation in the Franklin region, 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 Franklin Regional Transit Authority (FRTA) for the period July 1, 2015 through June 30, 2017.”
The audit looked at vehicle maintenance, vehicles used by staff rather than passengers, and whether FRTA gave the state financial records that should be available to the public.
“We also examined FRTA’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 public is supposed to be able to see how this transit agency spends money, and the audit says FRTA’s failure to submit required information reduced that transparency.
“Therefore, FRTA did not allow the Commonwealth to give the public a sufficient level of transparency regarding FRTA’s operations, including its overall financial health and the nature and extent of its expenses.”
If you live in one of the communities FRTA serves, this matters because FRTA provides local bus and demand-response transportation, including services for elderly and disabled residents.
“FRTA provides demand-response transportation services to elderly and disabled citizens in the communities it serves.”
The audit found two main problems: FRTA did not submit required financial data for public posting, and it did not properly document employee use of non-passenger vehicles.
“FRTA did not properly document the use of its non-revenue-producing vehicles by its employees.”
The auditor recommended that FRTA create formal procedures and monitoring controls for financial reporting and vehicle-use logs, and FRTA said it was working on both.
“Based on its response, FRTA is taking measures to ensure that it properly reports this information.”
“Non-revenue-producing vehicles” means light-duty vehicles used by FRTA employees for agency business, not vehicles used to collect fares or carry passengers.
“Non-revenue-producing vehicles are light-duty vehicles for temporary use by FRTA employees for agency-related business.”
What the Auditor checked
- Complied Did FRTA 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 FRTA 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 FRTA properly manage the use of its non-revenue-producing vehicles?
What the Auditor found
Why it matters: The public lacked sufficient transparency into FRTA’s operations, overall 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 within 30 days after the data becomes available. ( Section 14C of Chapter 7 of the Massachusetts General Laws; Section 14C(e) of Chapter 7 of the Massachusetts General Laws )
2 recommendations
- FRTA should develop formal policies and procedures for submitting this required information to EOAF.agency: agreed
- FRTA 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: "FRTA will develop its policy and monitoring controls once the time lines and final delivery criteria have been agreed to with the State Comptroller’s Office."
Auditor: "Based on its response, FRTA is taking measures to ensure that it properly reports this information."
Why it matters: There was a higher-than-acceptable risk that non-revenue-producing vehicles could be used for non-business purposes without detection.
Standard: MassDOT Motor Vehicles Policy No. P-D0032-01 is cited as a best practice, and Section C of the Massachusetts Statewide Records Retention Schedule requires records of state-owned equipment and vehicle use to be retained for three years. ( Section C of the Massachusetts Statewide Records Retention Schedule )
2 recommendations
- FRTA should establish policies and procedures, consistent with those established by MassDOT, that require a log for all its non-revenue-producing vehicles that documents required vehicle-use information.agency: agreed
- FRTA should ensure that these policies and procedures include monitoring controls to ensure that they are adhered to.agency: agreed
Agency response & Auditor reply
Agency: "The FRTA will develop a written policy for its non-revenue producing vehicles that will incorporate best practices from other RTAs and MassDOT."
Auditor: "Based on its response, FRTA is taking measures to address our concerns in this area."
More audits of this entity
Other Office of the State Auditor reports on Franklin Regional Transit Authority .
- Audit of the Franklin Regional Transit Authority (August 23, 2023)Transit Authority · August 23, 2023