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Internal Controls: Transportation Acts To Correct Weaknesses in Its Bus Program

RCED-87-97 Published: Apr 28, 1987. Publicly Released: Apr 28, 1987.
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Highlights

Pursuant to the Federal Managers' Financial Integrity Act, GAO reviewed the Urban Mass Transportation Administration's (UMTA) actions to correct a material weakness in its bus grant program, in that it: (1) lacked policy guidance on grantees' bus fleet management; and (2) did not sufficiently direct grantees to properly maintain and rehabilitate their buses.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation The Secretary of Transportation should direct the Administrator, UMTA, to clarify its policy guidance regarding how grantees should calculate the service life or residual value of buses being stockpiled, replaced, or disposed of.
Closed – Implemented
The Department of Transportation (DOT) issued guidance on September 18, 1987.
Department of Transportation The Secretary of Transportation should direct the Administrator, UMTA, to require that transit authorities certify to UMTA that buses they propose to stockpile, dispose of, or replace, satisfy the UMTA service-life provision.
Closed – Implemented
DOT issued guidance on September 18, 1987.
Department of Transportation The Secretary of Transportation should direct the Administrator, UMTA, to require that grantees provide actual service-life data on buses to be stockpiled, disposed of, or replaced, on an exception basis.
Closed – Implemented
DOT issued guidance on September 18, 1987.

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Full Report (24 pages)

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Topics

Auditing and Financial Management
Cost controlEquipment maintenanceGrant administrationGrant monitoringInternal controlsLife cycle costsMass transit fundingMass transitMotor vehiclesRaw materials