Audit of the Merrimack Valley Regional Transit Authority

This is a Massachusetts State Auditor performance audit of the Merrimack Valley 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 vehicle maintenance, use of non-passenger-service vehicles, and whether MVRTA gave required financial records to the state for public disclosure.

“We also examined MVRTA’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 missing financial reporting reduced public transparency about MVRTA’s finances, and poor vehicle-use records increased the risk that agency vehicles could be used for non-work purposes without being caught.

“Therefore, MVRTA did not allow the Commonwealth to give the public a sufficient level of transparency regarding MVRTA’s operations, including its overall financial health and the nature and extent of its expenses.”

If you live in or use transit in the Merrimack Valley, this affects your ability to see how public transit money is spent and whether agency vehicles are being controlled properly.

“MVRTA operates local fixed-route and demand-response services within the 284-square-mile Merrimack Valley area, serving a population of more than 352,000.”

Auditors found MVRTA was generally maintaining required vehicle maintenance records, but failed on financial transparency reporting and documentation of employee use of non-revenue vehicles.

“Did MVRTA 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?”

MVRTA said it would work with state officials on reporting timelines and delivery requirements, and would create policies and monitoring controls for the required financial submissions and vehicle-use procedures.

“MVRTA 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.”

This was not about whether buses ran on time; it was about whether a public transit agency followed transparency rules and kept enough records to protect public resources.

“As a result of the lack of monitoring of use, there is a higher-than-acceptable risk that these vehicles may be used for non-business purposes without detection.”

“Non-revenue-producing vehicles” means agency vehicles used by employees for MVRTA business, not buses or vans carrying paying passengers.

“Non-revenue-producing vehicles are light-duty vehicles for temporary use by MVRTA employees for agency-related business.”