FAC Explorer

Audit 322673

FY End
2023-12-31
Total Expended
$2.12B
Findings
8
Programs
14
Organization: Metropolitan Transportation Authority (NY)
Year: 2023 Accepted: 2024-09-30
Auditor: Deloitte & Touche LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499816 2023-001 - - M
499817 2023-002 Significant Deficiency - F
499818 2023-003 - - B
499819 2023-004 Significant Deficiency - F
1076258 2023-001 - - M
1076259 2023-002 Significant Deficiency - F
1076260 2023-003 - - B
1076261 2023-004 Significant Deficiency - F

Programs

ALN Program Spent Major Findings
20.507 Federal Transit Formula Grants $946.48M Yes 1
20.525 State of Good Repair Grants Program $701.73M Yes 0
20.527 Public Transportation Emergency Relief Program $358.94M Yes 1
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $48.26M Yes 0
20.507 Covid-19-Federal Transit Formula Grants $26.21M Yes 0
97.075 Rail and Transit Security Grant Program $23.45M Yes 2
20.500 Covid-19- Federal Transit Capital Investment Grants $4.45M Yes 0
20.326 Federal-State Partnership for Intercity Passenger Rail $4.31M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.21M - 0
20.530 Public Transportation Innovation $937,064 - 0
20.321 Railroad Safety Technology Grants $375,567 - 0
20.301 Railroad Safety $366,258 - 0
97.056 Port Security Grant Program $278,467 - 0
20.521 New Freedom Program $5,501 - 0

Contacts

Name Title Type
NXGWYMXLNW95 James McGovern Auditee
2123403423 Jill Strohmeyer Auditor
No contacts on file

Notes to SEFA

Title: 1. SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Summary of Significant Accounting Policies — Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Basis of Presentation - The accompanying Schedule includes the federal award activity of the Metropolitan Transportation Authority (“MTA”), a component unit of the State of New York under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the MTA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the MTA. De Minimis Rate Used: N Rate Explanation: The MTA has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Summary of Significant Accounting Policies — Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Basis of Presentation - The accompanying Schedule includes the federal award activity of the Metropolitan Transportation Authority (“MTA”), a component unit of the State of New York under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the MTA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the MTA. Financial Reporting Entity — The Metropolitan Transportation Authority (“MTA”) was established in 1965, under Section 1263 of the New York Public Authorities Law, and is a public benefit corporation and a component unit of the State of New York (“NYS”) whose mission is to continue, develop and improve public transportation and to develop and implement a unified public transportation policy in the New York metropolitan area. These consolidated financial statements are of the Metropolitan Transportation Authority (“MTA”), including its related groups (collectively, the “MTA Group”), which are listed below. The Business-Type activities in these consolidated financial statements purport the operations of the MTA Group. Metropolitan Transportation Authority and Related Groups (Component Units) ● Metropolitan Transportation Authority Headquarters (“MTAHQ”) provides support in budget, cash management, finance, legal, real estate, treasury, risk and insurance management, and other services to the related groups listed below. ● The Long Island Rail Road Company (“MTA Long Island Rail Road”) provides passenger transportation between New York City (“NYC”) and Long Island. ● Metro-North Commuter Railroad Company (“MTA Metro-North Railroad”) provides passenger transportation between NYC and the suburban communities in Westchester, Dutchess, Putnam, Orange, and Rockland counties in NYS and New Haven and Fairfield counties in Connecticut. ● Staten Island Rapid Transit Operating Authority (“MTA Staten Island Railway”) provides passenger transportation on Staten Island. ● First Mutual Transportation Assurance Company (“FMTAC”) provides primary insurance coverage for certain losses, some of which are reinsured, and assumes reinsurance coverage for certain other losses. ● MTA Construction and Development (“MTA Construction and Development”) provides oversight for the planning, design and construction of current and future major MTA system-wide expansion projects. ● MTA Bus Company (“MTA Bus”) operates certain bus routes in areas previously served by private bus operators pursuant to franchises granted by the City of New York. ● MTA Grand Central Madison Operating Company (“MTA GCMOC”) operates and maintains the infrastructure and structures supporting Long Island Rail Road access into Grand Central Terminal. ● MTAHQ, MTA Long Island Rail Road, MTA Metro-North Railroad, MTA Staten Island Railway, FMTAC, MTA Capital Construction, MTA Bus, and MTA GCMOC collectively are referred to herein as MTA. MTA Long Island Rail Road and MTA Metro-North Railroad are referred to collectively as the Commuter Railroads. ● New York City Transit Authority (“MTA New York City Transit”) and its subsidiary, Manhattan and Bronx Surface Transit Operating Authority (“MaBSTOA”), provide subway and public bus service within the five boroughs of New York City. ● Triborough Bridge and Tunnel Authority (“MTA Bridges and Tunnels”) operates seven toll bridges, two tunnels, and the Battery Parking Garage, all within the five boroughs of New York City. The subsidiaries and affiliates, considered component units of the MTA, are operationally and legally independent of the MTA. These related groups enjoy certain rights typically associated with separate legal status including, in some cases, the ability to issue debt. However, they are included in the MTA’s consolidated financial statements as blended component units because of the MTA’s financial accountability for these entities and they are under the direction of the MTA Board (a reference to “MTA Board” means the board of MTAHQ and/or the boards of the other MTA Group entities that apply in the specific context, all of which are comprised of the same persons). Under accounting principles generally accepted in the United States of America (“GAAP”), the MTA is required to include these related groups in its financial statements. While certain units are separate legal entities, they do have legal capital requirements and the revenues of all of the related groups of the MTA are used to support the organizations as a whole. The components do not constitute a separate accounting entity (fund) since there is no legal requirement to account for the activities of the components as discrete accounting entities. Therefore, the MTA financial statements are presented on a consolidated basis with segment disclosure for each distinct operating activity. All of the component units publish separate annual financial statements, which are available by writing to the MTA Deputy Chief, Controller’s Office, 2 Broadway, 15th Floor, New York, New York 10004. Basis of Accounting — The fiduciary fund financial statements provide information about the funds that are used to report resources held in trust for retirees and beneficiaries covered by pension plans and other employee benefit trust funds of the MTA. Separate financial statements are presented for the fiduciary funds.
Title: 2. INDIRECT COST RATE Accounting Policies: Summary of Significant Accounting Policies — Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Basis of Presentation - The accompanying Schedule includes the federal award activity of the Metropolitan Transportation Authority (“MTA”), a component unit of the State of New York under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the MTA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the MTA. De Minimis Rate Used: N Rate Explanation: The MTA has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The MTA has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3. PASS-THROUGH PROGRAMS Accounting Policies: Summary of Significant Accounting Policies — Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Basis of Presentation - The accompanying Schedule includes the federal award activity of the Metropolitan Transportation Authority (“MTA”), a component unit of the State of New York under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the MTA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the MTA. De Minimis Rate Used: N Rate Explanation: The MTA has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. When the MTA receives Federal funds from a government entity other than the Federal government (“pass- through”), the funds are accumulated based upon the Assistance Listing Number (“ALN”) number advised by the pass-through grantor.
Title: 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Accounting Policies: Summary of Significant Accounting Policies — Expenditures reported on the schedule of expenditures of federal awards (the “Schedule”) are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Basis of Presentation - The accompanying Schedule includes the federal award activity of the Metropolitan Transportation Authority (“MTA”), a component unit of the State of New York under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the MTA, it is not intended to and does not present the financial position, changes in net position, or cash flows of the MTA. De Minimis Rate Used: N Rate Explanation: The MTA has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The regulations and guidelines governing the preparation of Federal and State financial reports vary by state and Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal and state financial reports do not necessarily agree with the amounts reported in the accompanying Schedule of Expenditures of Federal Awards, which is prepared as explained in Note 1 above.

Finding Details

Finding 2023-001
METROPOLITAN TRANSPORTATION AUTHORITY (A Component Unit of the State of New York) SCHEDULE OF FINDINGS AND QUESTIONED COSTS- FEDERAL AWARDS (CONTINUED) YEAR ENDED DECEMBER 31, 2023 Reference Number: 2023-001 Federal Agency: U.S. Department of Homeland Security Federal Program: Rail and Transit Security Grant Program ALN Number: 97.075 Contract Number: FE2019-RA-00004; FE2020-RA-00005; FE2021-RA-00004; FE2022-RA-00006 Compliance Requirement: Subrecipient Monitoring Type of Finding: Deficiency-Non-Compliance 1. CRITERIA Subrecipient Monitoring - As stated in Uniform Grant Guidance - §200.331 Requirements for pass-through entities, all pass-through entities must: Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes: • Subrecipient name (which must match the name associated with its unique entity identifier); • Subrecipient’s unique entity identifier; • Federal Award Identification Number (FAIN); • Assistance Listing Number (ALN) Number and Name; the pass-through entity must identify the dollar amount made available under each Federal award and the ALN number at time of disbursement; • Identification of whether the award is Research & Development; and • Indirect cost rate for the Federal award (including if the de minimis rate is charged per §200.414 Indirect (F&A) costs); 2. CONDITION/PERSPECTIVE Metropolitan Transportation Authority (“MTA”) has subrecipient monitoring procedures in place. MTA has corporate policies and procedures regarding subrecipient contracts. We reviewed Rail and Transit Security Grant Program’s subrecipient monitoring compliance. This program had one subrecipient. Based on our review of the subrecipient contract for this program, we noted that the subrecipient contract did not have all the required elements as stated in §200.331. 3. CAUSE MTA did not ensure that the contract between MTA and the subrecipient included the ALN and all other required elements as required by 2 CFR; §200.331. 4. EFFECT The Subrecipient may not identify an MTA contract as a federal program, and therefore may not follow the required federal award requirements. Additionally the subrecipient may not include the program in the Subrecipient’s schedule of expenditures of federal awards and the program may not be audited as part of the Subrecipient’s single audit. 5. REPEAT FINDING No 6. RECOMMENDATION We recommend that MTA implement policies and procedures to communicate the federal grant information to all subrecipients in accordance with Uniform Grant Guidance CFR 200.331 Subrecipient Requirements. 7. QUESTIONED COST None. 8. VIEWS OF RESPONSIBLE OFFICIAL The MTA Office of Security is acknowledging the sub-recipient agreement did not include the ALN Number – 97.075, Identification of whether the award is R&D and Indirect cost rate for the Federal award (including if the de minimis rate is charged) per § 200.414 on the check list. The MTA does provide a copy of the award letter to our sub-recipient(s) and we perform yearly sub-recipient monitoring of our sub-recipient(s). Also, see “Corrective Action Plan”.
Finding 2023-002
Reference Number: 2023-002 Federal Agency: U.S. Department of Homeland Security Federal Program: Rail and Transit Security Grant Program ALN Number: 97.075 Contract Number: FE2019-RA-00004; FE2020-RA-00005; FE2021-RA-00004; FE2022-RA-00006 Compliance Requirement: Equipment and Real Property Management Type of Finding: Significant Deficiency-Non-Compliance (1) CRITERIA Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (2) CONDITION/PERSPECTIVE The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Rail and Transit Security Grant Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted that the physical inventory of the program property was not taken in the last two years, as required by 2 CFR section 200.313(d)(2). (3) CAUSE MTA did not ensure that the physical inventory of the program property was completed and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (4) EFFECT MTA may be considered non-compliant related to Equipment and Real Property management compliance as required by 2 CFR section 200.313(d)(2). (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that MTA ensure that the physical inventory of the property must be taken and the results reconciled with the property records at least once every two years as required by 2 CFR section 200.313(d)(2). (7) QUESTIONED COST None. (8) VIEWS OF RESPONSIBLE OFFICIAL The MTA Office of Security is acknowledging the finding. The MTA Office of Security is implementing an update on our procedures for equipment inventory management. We will be working with the Office of Security’s Director of Quality Assurance along with MTAHQ Audit, to help us review all equipment inventory listings and physical inventory inspection of federally funded purchased equipment. We will be implementing an internal agreement between MTA Office of Security and the MTA Agency awarded federal funds under grant programs managed by HQ Office of Security. This agreement will include all terms and conditions applicable to the specific grant award. Also, see “Corrective Action Plan”.
Finding 2023-003
Reference Number: 2023-003 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster Cluster Program: Federal Transit Formula Grants ALN Number: 20.507 Contract Number: U9NY-2019-057-02 Compliance Requirement: Allowable Cost Principal Type of Finding: Deficiency-Non-Compliance (1) CRITERIA Allowable Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: • Costs did not consist of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law). (2) CONDITION/PERSPECTIVE The MTA has Allowable Costs procedures in place. MTA has corporate policies and procedures regarding Allowable Costs. We tested the Federal Transit Cluster- Federal Transit Formula Grant’s Allowable Costs compliance. Based on our review of sixty samples related to personnel services for this cluster , we noted that one sample related to an MTA Bus Company personnel’s hourly rate which was charged at higher rate. The correct hourly rate was $46.82 and MTA Bus Company used a rate of $60.99. (3) CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. (4) EFFECT The FTA may disallow reimbursement for the incorrect amount reported and MTA may be considered non-compliant related to Allowable Costs compliance related to 2 CFR- Part 200; Subpart E – Allowable Costs. (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that MTA ensure that all personnel are reviewed and should be charged at the correct hourly rates as required by §200 CFR Subpart E – Allowable Costs. (7) QUESTIONED COST Cannot be determined. (8) VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the finding. MTA BUS accounting worked with the project team to implement the correct rate and reparations applied. Also, see “Corrective Action Plan”.
Finding 2023-004
Reference Number: 2023-004 Federal Agency: U.S. Department of Transportation Federal Program: Public Transportation Emergency Relief Program Cluster Program: Not Applicable ALN Number: 20.527 Contract Number: Various Compliance Requirement: Equipment and Real Property Management Type of Finding: Significant Deficiency-Non-Compliance (1) CRITERIA Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (2) CONDITION/PERSPECTIVE The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Public Transportation Emergency Relief Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted of sixty samples selected, eight (8) equipment samples related to New York City Transit Authority were transferred to the City of New York Police Department. The eight piece of equipment related to police radios and were included in MTA Biannual report as out-of service and fully depreciated. Therefore, we were not able to verify existence of these piece of equipment. (3) CAUSE MTA did not ensure that all out-of-service equipment was properly adjusted in the MTA Bi-Annual report and a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. (4) EFFECT MTA may be considered non-compliant related to Equipment and Real Property management compliance related to 2 CFR section 200.313(d)(2). (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that the MTA ensure all equipment in service should be properly accounted and reported in MTA’s Bi-Annual report and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (7) QUESTIONED COST None. (8) VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the finding. The assets are fully depreciated. We will remove the assets from the Biennial listing from PSR and write them off from the accounting system. Also, see “Corrective Action Plan”.
Finding 2023-001
METROPOLITAN TRANSPORTATION AUTHORITY (A Component Unit of the State of New York) SCHEDULE OF FINDINGS AND QUESTIONED COSTS- FEDERAL AWARDS (CONTINUED) YEAR ENDED DECEMBER 31, 2023 Reference Number: 2023-001 Federal Agency: U.S. Department of Homeland Security Federal Program: Rail and Transit Security Grant Program ALN Number: 97.075 Contract Number: FE2019-RA-00004; FE2020-RA-00005; FE2021-RA-00004; FE2022-RA-00006 Compliance Requirement: Subrecipient Monitoring Type of Finding: Deficiency-Non-Compliance 1. CRITERIA Subrecipient Monitoring - As stated in Uniform Grant Guidance - §200.331 Requirements for pass-through entities, all pass-through entities must: Ensure that every subaward is clearly identified to the subrecipient as a subaward and includes the following information at the time of the subaward and if any of these data elements change, include the changes in subsequent subaward modification. When some of this information is not available, the pass-through entity must provide the best information available to describe the Federal award and subaward. Required information includes: • Subrecipient name (which must match the name associated with its unique entity identifier); • Subrecipient’s unique entity identifier; • Federal Award Identification Number (FAIN); • Assistance Listing Number (ALN) Number and Name; the pass-through entity must identify the dollar amount made available under each Federal award and the ALN number at time of disbursement; • Identification of whether the award is Research & Development; and • Indirect cost rate for the Federal award (including if the de minimis rate is charged per §200.414 Indirect (F&A) costs); 2. CONDITION/PERSPECTIVE Metropolitan Transportation Authority (“MTA”) has subrecipient monitoring procedures in place. MTA has corporate policies and procedures regarding subrecipient contracts. We reviewed Rail and Transit Security Grant Program’s subrecipient monitoring compliance. This program had one subrecipient. Based on our review of the subrecipient contract for this program, we noted that the subrecipient contract did not have all the required elements as stated in §200.331. 3. CAUSE MTA did not ensure that the contract between MTA and the subrecipient included the ALN and all other required elements as required by 2 CFR; §200.331. 4. EFFECT The Subrecipient may not identify an MTA contract as a federal program, and therefore may not follow the required federal award requirements. Additionally the subrecipient may not include the program in the Subrecipient’s schedule of expenditures of federal awards and the program may not be audited as part of the Subrecipient’s single audit. 5. REPEAT FINDING No 6. RECOMMENDATION We recommend that MTA implement policies and procedures to communicate the federal grant information to all subrecipients in accordance with Uniform Grant Guidance CFR 200.331 Subrecipient Requirements. 7. QUESTIONED COST None. 8. VIEWS OF RESPONSIBLE OFFICIAL The MTA Office of Security is acknowledging the sub-recipient agreement did not include the ALN Number – 97.075, Identification of whether the award is R&D and Indirect cost rate for the Federal award (including if the de minimis rate is charged) per § 200.414 on the check list. The MTA does provide a copy of the award letter to our sub-recipient(s) and we perform yearly sub-recipient monitoring of our sub-recipient(s). Also, see “Corrective Action Plan”.
Finding 2023-002
Reference Number: 2023-002 Federal Agency: U.S. Department of Homeland Security Federal Program: Rail and Transit Security Grant Program ALN Number: 97.075 Contract Number: FE2019-RA-00004; FE2020-RA-00005; FE2021-RA-00004; FE2022-RA-00006 Compliance Requirement: Equipment and Real Property Management Type of Finding: Significant Deficiency-Non-Compliance (1) CRITERIA Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (2) CONDITION/PERSPECTIVE The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Rail and Transit Security Grant Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted that the physical inventory of the program property was not taken in the last two years, as required by 2 CFR section 200.313(d)(2). (3) CAUSE MTA did not ensure that the physical inventory of the program property was completed and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (4) EFFECT MTA may be considered non-compliant related to Equipment and Real Property management compliance as required by 2 CFR section 200.313(d)(2). (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that MTA ensure that the physical inventory of the property must be taken and the results reconciled with the property records at least once every two years as required by 2 CFR section 200.313(d)(2). (7) QUESTIONED COST None. (8) VIEWS OF RESPONSIBLE OFFICIAL The MTA Office of Security is acknowledging the finding. The MTA Office of Security is implementing an update on our procedures for equipment inventory management. We will be working with the Office of Security’s Director of Quality Assurance along with MTAHQ Audit, to help us review all equipment inventory listings and physical inventory inspection of federally funded purchased equipment. We will be implementing an internal agreement between MTA Office of Security and the MTA Agency awarded federal funds under grant programs managed by HQ Office of Security. This agreement will include all terms and conditions applicable to the specific grant award. Also, see “Corrective Action Plan”.
Finding 2023-003
Reference Number: 2023-003 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster Cluster Program: Federal Transit Formula Grants ALN Number: 20.507 Contract Number: U9NY-2019-057-02 Compliance Requirement: Allowable Cost Principal Type of Finding: Deficiency-Non-Compliance (1) CRITERIA Allowable Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: • Costs did not consist of improper payments, including (1) payments that should not have been made or that were made in incorrect amounts (including overpayments and underpayments) under statutory, contractual, administrative, or other legally applicable requirements; (2) payments that do not account for credit for applicable discounts; (3) duplicate payments; (4) payments that were made to an ineligible party or for an ineligible good or service; and (5) payments for goods or services not received (except for such payments where authorized by law). (2) CONDITION/PERSPECTIVE The MTA has Allowable Costs procedures in place. MTA has corporate policies and procedures regarding Allowable Costs. We tested the Federal Transit Cluster- Federal Transit Formula Grant’s Allowable Costs compliance. Based on our review of sixty samples related to personnel services for this cluster , we noted that one sample related to an MTA Bus Company personnel’s hourly rate which was charged at higher rate. The correct hourly rate was $46.82 and MTA Bus Company used a rate of $60.99. (3) CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. (4) EFFECT The FTA may disallow reimbursement for the incorrect amount reported and MTA may be considered non-compliant related to Allowable Costs compliance related to 2 CFR- Part 200; Subpart E – Allowable Costs. (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that MTA ensure that all personnel are reviewed and should be charged at the correct hourly rates as required by §200 CFR Subpart E – Allowable Costs. (7) QUESTIONED COST Cannot be determined. (8) VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the finding. MTA BUS accounting worked with the project team to implement the correct rate and reparations applied. Also, see “Corrective Action Plan”.
Finding 2023-004
Reference Number: 2023-004 Federal Agency: U.S. Department of Transportation Federal Program: Public Transportation Emergency Relief Program Cluster Program: Not Applicable ALN Number: 20.527 Contract Number: Various Compliance Requirement: Equipment and Real Property Management Type of Finding: Significant Deficiency-Non-Compliance (1) CRITERIA Equipment and Real Property Management - As stated in Uniform Grant Guidance - §200.313 Requirements for Equipment and Real Property Management: • Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the federal award identification number), who holds title, the acquisition date, cost of the property, percentage of federal participation in the project costs for the federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sales price of the property (2 CFR section 200.313(d)(1)). • A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (2) CONDITION/PERSPECTIVE The MTA has Equipment and Real Property management procedures in place. MTA has corporate policies and procedures regarding Equipment and Real Property management. We tested the Public Transportation Emergency Relief Program’s Equipment and Real Property management compliance. Based on our review of the Equipment and Real Property for this program, we noted of sixty samples selected, eight (8) equipment samples related to New York City Transit Authority were transferred to the City of New York Police Department. The eight piece of equipment related to police radios and were included in MTA Biannual report as out-of service and fully depreciated. Therefore, we were not able to verify existence of these piece of equipment. (3) CAUSE MTA did not ensure that all out-of-service equipment was properly adjusted in the MTA Bi-Annual report and a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the property. (4) EFFECT MTA may be considered non-compliant related to Equipment and Real Property management compliance related to 2 CFR section 200.313(d)(2). (5) REPEAT FINDING No (6) RECOMMENDATION We recommend that the MTA ensure all equipment in service should be properly accounted and reported in MTA’s Bi-Annual report and the results reconciled with the property records at least once every two years (2 CFR section 200.313(d)(2)). (7) QUESTIONED COST None. (8) VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the finding. The assets are fully depreciated. We will remove the assets from the Biennial listing from PSR and write them off from the accounting system. Also, see “Corrective Action Plan”.