FAC Explorer

Audit 363411

FY End
2024-12-31
Total Expended
$4.82B
Findings
6
Programs
16
Organization: Metropolitan Transportation Authority (NY)
Year: 2024 Accepted: 2025-07-31
Auditor: Deloitte & Touche LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
572350 2024-001 Significant Deficiency - A
572351 2024-001 Significant Deficiency - A
572352 2024-001 Significant Deficiency - A
1148792 2024-001 Significant Deficiency - A
1148793 2024-001 Significant Deficiency - A
1148794 2024-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
20.525 State of Good Repair Grants Program $2.22B Yes 1
20.507 Federal Transit Formula Grants $2.17B Yes 1
20.527 Public Transportation Emergency Relief Program $166.50M - 0
20.500 Federal Transit Capital Investment Grants $165.11M Yes 0
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $76.10M Yes 1
97.075 Rail and Transit Security Grant Program $33.83M - 0
20.326 Federal-State Partnership for Intercity Passenger Rail $4.99M Yes 0
97.067 Homeland Security Grant Program $2.00M - 0
20.530 Public Transportation Innovation $575,124 - 0
97.056 Port Security Grant Program $562,500 - 0
20.205 Highway Planning and Construction $348,679 - 0
20.321 Railroad Safety Technology Grants $196,628 - 0
20.514 Public Transportation Research, Technical Assistance, and Training $98,401 - 0
20.301 Railroad Safety $92,181 - 0
20.521 New Freedom Program $3,455 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $-20.48M - 0

Contacts

Name Title Type
NXGWYMXLNW95 James McGovern Auditee
2123403423 Kostas, Makrakis Auditor
No contacts on file

Notes to SEFA

Title: 1. SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: 1. SIG1. SIGNIFICANT 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, 2024. 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 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 interim financial statements are of the Metropolitan Transportation Authority, 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. 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. 1. SIGNIFICANT 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, 2024. 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 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 interim financial statements are of the Metropolitan Transportation Authority, 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 accompanying consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The MTA applies Governmental Accounting Standards Board (“GASB”) Codification of Governmental Accounting and Financial Reporting Standards (“GASB Codification”) Section P80, Proprietary Accounting and Financial Reporting.
Title: 2.            INDIRECT COST RATE Accounting Policies: 1. SIG1. SIGNIFICANT 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, 2024. 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 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 interim financial statements are of the Metropolitan Transportation Authority, 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. 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: 1. SIG1. SIGNIFICANT 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, 2024. 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 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 interim financial statements are of the Metropolitan Transportation Authority, 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. 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: 1. SIG1. SIGNIFICANT 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, 2024. 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 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 interim financial statements are of the Metropolitan Transportation Authority, 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. 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 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.
Finding 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.
Finding 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.
Finding 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.
Finding 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.
Finding 2024-001
METROPOLITAN TRANSPORReference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 1. CRITERIA Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs––Direct - As stated in Uniform Grant Guidance - §200 Requirements for Allowable Costs: a. 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 Activities Allowed/Allowable Costs/Cost Principles including Indirect Costs procedures in place. MTA has corporate policies and procedures regarding Activities Allowed/Allowable Costs. We tested the Federal Transit Cluster’s Allowable Costs compliance. Based on our review of sixty samples related to Personnel Services and Other than Personnel Services for this cluster, we noted that four samples related to an MTA Bus Company personnel’s hourly rate were charged at higher rate. We noted that the rate per personnel file and employee payroll register differs from the actual rate used by the agency to charge labor costs. The agency calculated labor cost using the annual earnings that is divided by 52 weeks because there are 52 weeks a year, but MTA payroll department used 52.1428 weeks based upon 365/7 days a week, which created variances in labor costs billed and actual recorded labor costs. For Contract # - U3NY-2023-101-02 and U9NY-2018-059-01 – We noted two instances of sixty samples reviewed where the agency used 2023 approved overhead rate of 98.18% instead of the 2024 approved overhead rate of 98.98%. 3. CAUSE MTA did not ensure that all personnel hourly rates were charged at the correct amount. MTA did not ensure that correct approved indirect rate applied to the direct cost. Reference Number: 2024-001 Federal Agency: U.S. Department of Transportation Federal Program: Federal Transit Cluster ALN Number: 20.507; 20.525; and 20.526 Contract Number: C40261TECHINSP; C33941EFA-MTAB; C40265TECH-MTAB; U3NY-2023-101-02 and U9NY-2018-059-01 Requirement: Activities Allowed/Allowable Costs/Cost Principles MTA Agencies : MTA Bus; Staten Island Rapid Transit Operating Authority Type of Finding: Significant Deficiency-Non-Compliance 4. EFFECT The FTA may disallow reimbursement for the incorrect amounts reported and MTA may be considered non-compliant related to the Activities Allowed/Allowable/Cost Principles compliance requirements within 2 CFR- Part 200; Subpart E – Activities Allowed/Allowable Costs/Cost Principles. 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. We also recommend that approved indirect rate applied to direct costs. 7. QUESTIONED COST Cannot be Determined. 8. VIEWS OF RESPONSIBLE OFFICIAL MTA is acknowledging the findings. MTA Bus Accounting will work with the project team to implement the correct rate and return the credit to FTA as needed. SIRTOA Finance will ensure that the overhead rates on the labor sheets reflect the correct percentage. Also, see “Corrective Action Plan”.