Audit of the Lowell Regional Transit Authority
July 23, 2018 · Lowell Regional Transit Authority · Read the full official report on mass.gov ↗
Published July 23, 2018 Audit covers July 1, 2015 – June 30, 2017 Under Suzanne M. Bump · 2011–2023
source
“Below is a summary of our findings and recommendations, with links to each page listed.”
Read the plain-English breakdown
This is a state performance audit of the Lowell Regional Transit Authority covering July 1, 2015 through June 30, 2017.
“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2015 through June 30, 2017.”
Auditors reviewed LRTA vehicle maintenance, use of non-passenger vehicles, and whether LRTA gave required financial records to the state for public disclosure.
“We also examined LRTA’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 needs access to agency financial information to understand how LRTA is spending money and whether it is financially healthy.
“Therefore, LRTA did not allow the Commonwealth to give the public a sufficient level of transparency regarding LRTA’s operations, including its overall financial health and the nature and extent of its expenses.”
If you live in or travel through the Lowell area, this audit affects how transparent LRTA is about its spending and how carefully it controls agency vehicles paid for to support transit operations.
“LRTA operates local fixed-route and demand-response services within the 282-square-mile Lowell area, serving a population of more than 300,000.”
The two problems were missing public financial reporting and weak documentation for employee use of non-revenue vehicles; auditors did not find a problem with preventive maintenance records.
“Did LRTA 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?”
LRTA said it would work with state officials on posting financial data and would create written policies, logs, and monitoring controls for non-revenue vehicle use.
“The LRTA will develop a policy and procedure manual for the use of its non-revenue-producing vehicles.”
The audit is significant because LRTA received millions in public funding and served many communities, so weak transparency and vehicle controls affect public accountability.
“The largest source of funding is state contract assistance,3 followed by local assessment4 payments, fare and terminal revenue, and Federal Transit Administration (FTA) grants.”
“Non-revenue-producing vehicles” means LRTA-owned light-duty vehicles used by employees for agency business, not buses or vans carrying paying riders.
“Non-revenue-producing vehicles are light-duty vehicles for temporary use by LRTA employees for agency-related business.”
What the Auditor checked
- Complied Did LRTA 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 LRTA 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 LRTA properly manage the use of its non-revenue-producing vehicles?
What the Auditor found
Why it matters: The public lacked sufficient transparency into LRTA’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 Office of the State Comptroller’s 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
- LRTA should develop formal policies and procedures for submitting this required information to the Executive Office for Administration and Finance.agency: agreed
- LRTA should establish monitoring controls to ensure staff assigned to this task follow those policies and procedures.agency: agreed
Agency response & Auditor reply
Agency: "LRTA 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, LRTA is taking measures to ensure that it reports this required information to EOAF."
Why it matters: There was 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, is cited as a best practice for logging use of non-revenue-producing vehicles.
2 recommendations
- LRTA should establish policies and procedures, consistent with MassDOT’s, for non-revenue-producing vehicles that require a log documenting driver, trip, vehicle, odometer, condition, damage, and maintenance information.agency: agreed
- LRTA should ensure the policies and procedures include monitoring controls to ensure compliance.agency: agreed
Agency response & Auditor reply
Agency: "The LRTA will develop a policy and procedure manual for the use of its non-revenue-producing vehicles."
Auditor: "Based on its response, LRTA is taking measures to address our concerns in this area."
More audits of this entity
Other Office of the State Auditor reports on Lowell Regional Transit Authority .
- Audit of the Lowell Regional Transit Authority (June 7, 2023)Transit Authority · June 7, 2023