Skip to main content

The Department of Transportation Should Improve Its Policies and Practices on Grant-Related Income

GGD-84-5 Published: Mar 30, 1984. Publicly Released: Mar 30, 1984.
Jump To:
Skip to Highlights

Highlights

GAO completed a Government-wide review of Federal agency' and grantee' policies and practices for managing and reporting income generated under federally assisted programs.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation The Secretary of Transportation should direct the UMTA and the FHwA to establish regulations on program income that are consistent with the OMB standards.
Closed – Not Implemented
FHwA considers its requirements on income consistent with OMB standards; GAO disagrees.
Department of Transportation The Secretary of Transportation should direct UMTA, FHwA, and the Federal Aviation Administration (FAA) to specify in their grant agreements which program income option grantees should use and, when the deductive option is to apply, to specify that grant budgets should not be allowed to increase merely because unexpected program income was generated.
Closed – Not Implemented
FHwA maintains that it always uses the deductive option; GAO disagrees. FAA and UMTA plan to review this issue.
Department of Transportation The Secretary of Transportation should direct UMTA, FHwA, and FAA to require grantees to report on the source, amount, and disposition of all types of grant-related income.
Closed – Not Implemented
There will be no agency action until OMB concludes its study of A102.
Department of Transportation The Secretary of Transportation should direct UMTA, FHwA, and FAA to require grantees to pay the Federal Government its share of property sales proceeds.
Closed – Not Implemented
FAA and UMTA stated they already have regulations but said nothing about adhering to them. FHwA requires credits but not payments. GAO believes that credits are not the same as payments.
Department of Transportation The Secretary of Transportation should direct UMTA, FHwA, and FAA to require grantees to return interest earned on: (1) sales proceeds when the proceeds themselves are required to be returned; and (2) Federal funds advanced to nonstate agencies.
Closed – Not Implemented
FAA and UMTA plan to act on the recommendation. FHwA did not address this recommendation.
Department of Transportation The Secretary of Transportation should direct UMTA to determine the Massachusetts Bay Transit Authority's current need for funds provided for light rail vehicles and seek the return of the Federal share of the excess funds being held and interest earned thereon.
Closed – Not Implemented
UMTA believes that its position is legally supported; GAO disagrees.

Full Report

Office of Public Affairs

Topics

Budget receiptsGrant administrationIntergovernmental fiscal relationsRegulationReports managementTransportationInterest earnedFederal fundsIntergovernmental relationsMotor vehicles