Finding 1076261 (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”.