Finding 1076260 (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”.