Better Administration Of Capital Grants Could Reduce Unnecessary Expenditures On Mass Transit Projects PDF Download

GAO reviewed six capital grants awarded to the Massachusetts Bay Transportation Authority (MBTA) to determine how well the Urban Mass Transportation Administration (UMTA) was monitoring them and whether the program was cost effective. MBTA received more than $1.8 billion in capital grants from fiscal years 1965 through 1981. GAO found that UMTA did not adequately monitor grant projects in accordance with its management guidelines and operating manual and did not have guidance on third-party funding of UMTA-supported projects. As a result, $2.3 million was spent to construct a rapid transit track that is not being fully used, and $5.6 million was spent to purchase and install power equipment that will not be used. Thus, nearly $8 million of federal funds was expended with only minimal benefits to the Authority. Furthermore, delays have occurred in the acquisition of automatic train control equipment which could increase equipment costs by more than $6 million. In addition, funds expected from third parties to help finance projects have not been obtained and may not be forthcoming. As a result, the Authority will have to scale down the project or ask UMTA for additional funds. Office of Management and Budget guidelines require grantees to submit quarterly progress reports to UMTA and require UMTA to make periodic visits to construction sites and to perform inspections. Due to staff shortages, UMTA did not follow its monitoring procedures. The quarterly reports were often incomplete and improperly analyzed. Inspections were not made as often as required, and trip reports were vague and incomplete.