Martha's Vineyard Regional Transit Authority

This is a 2013 state audit of the Martha's Vineyard Regional Transit Authority, covering July 1, 2010 through September 30, 2011.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor performed an audit of the Martha’s Vineyard Regional Transit Authority (VTA) for the period July 1, 2010 through September 30, 2011.”

Auditors checked whether VTA's finances, controls, assets, cash handling, fuel tracking, records, and legal compliance were being handled properly.

“The objectives of our audit were to determine whether: (1) the IPA’s report and workpapers were completed in accordance with GAGAS; (2) the VTA had implemented corrective actions to address issues identified in the IPA’s report; (3) the internal controls established by the VTA were adequate and functioning as intended; (4) the VTA’s assets were being properly safeguarded against loss, theft, and misuse; (5) there were adequate controls over the recording and distribution of bulk fuel purchases and disbursements; (6) controls over the safeguarding of cash collections were in place and in effect; (7) the VTA’s accounting records were being properly maintained and its financial activities were being properly reported; and (8) the VTA was complying with applicable laws, rules, and regulations.”

Because the unpaid local funds forced VTA to borrow more, creating extra interest costs.

“The impact of the additional debt incurred since 2000 has resulted in additional interest expenses to the Commonwealth of $37,700.”

If you use or help fund Martha's Vineyard transit, this matters because VTA carries over 1.1 million riders a year and provides regular and paratransit service across the island.

“The VTA services over 1.1 million passengers per year, utilizing 36 buses with connecting routes throughout the island.”

The main problem was not the buses themselves; it was weak tracking and communication among agencies about local payments owed to VTA.

“Further, we found an apparent lack of communication and documentation between the Department of Revenue (DOR), the Office of the State Treasurer (OST), and the Massachusetts Department of Transportation (MassDOT), which are the agencies responsible for the timely billing, collection, and disbursement of local aid assessments to the VTA.”

The auditor said VTA and the state agencies should reconcile what is owed and create a way to track unpaid local assessments.

“The VTA, in conjunction with OST, DOR, and MassDOT, should perform an immediate reconciliation of all outstanding receivables due the VTA.”

Auditors found the rest of the reviewed areas generally acceptable, except for the revenue collection and accounting problem.

“Based on our audit we determined that, except as reported in the Audit Findings section of this report, for the period July 1, 2010 through September 30, 2011, the VTA maintained adequate internal controls and complied with applicable laws, rules, and regulations in the areas reviewed.”

Local aid assessments are amounts each town served by VTA is supposed to contribute from local aid funds to help pay for VTA operations.

“The VTA receives some of its funding from an assessment of local aid funds from each of the communities it serves.”