Cape Ann Transportation Authority

This is a Massachusetts State Auditor report on how Cape Ann Transportation Authority used federal Recovery Act transportation money between March 31, 2009 and April 20, 2011.

“In accordance with Chapter 11, Section 12, of the General Laws, we have conducted an audit of CATA’s use of American Recovery and Reinvestment Act (ARRA) funds for the period March 31, 2009 through April 20, 2011.”

Auditors checked whether CATA had proper controls over the federal money, monitored it, and spent it for the purposes allowed by the grants.

“The objectives of our audit were to review CATA’s controls over and monitoring of ARRA funds received and expended.”

The money came from federal stimulus funds and totaled $743,765, so the public needed assurance that it was tracked, reported, and used correctly.

“During the audit period, CATA received and expended ARRA funds totaling $743,765.”

For riders and taxpayers, the money supported local bus service by paying for two replacement buses and operating assistance.

“These grants were authorized to be used for the purchase of two replacement 30-foot buses and operating assistance.”

CATA spent all of the federal funds, but the audit found two main problems: one payment sat too long before being spent, and required Recovery Act reports were missing, late, or inaccurate.

“As of April 20, 2011, CATA received and expended all its ARRA funds as detailed in the table below.”

The auditor recommended that CATA tighten its controls so future federal funds are spent promptly and reports are filed on time with complete and accurate information.

“At a minimum, these controls should ensure that reports are filed on time and that data quality and completeness are validated before submission.”

The reporting problems mattered because serious or repeated failures could put federal funding at risk.

“This action can result in the termination of Federal funding.”

A cash drawdown means CATA requested federal money from the government; federal rules said CATA should spend that money within three days instead of holding it.

“Specifically, we determined that CATA submitted and received a request for payment (cash drawdown) totaling $67,615 that was held for six days before the funds were disbursed.”