UMTA Needs Better Assurance That Grantees Comply With Selected Federal Requirements

Gao ID: RCED-85-26 February 19, 1985

As a result of the Urban Mass Transportation Administration's (UMTA) increasing reliance on grant certifications in the administration of federal aid to mass transportation systems, GAO reviewed 20 grantees' compliance with federal requirements on procurement, charter bus operations, school bus operations, and the provision of transportation for the elderly and the handicapped.

GAO found that, while UMTA grant compliance monitoring mechanisms have identified instances of noncompliance: (1) Inspector General (IG) audits are not specifically intended to review compliance, and IG responsibilities do not include routine examinations of every UMTA grantee; (2) independent audits have concentrated on financial matters; and (3) complaints by third parties are limited by their knowledge of the regulations. However, GAO believes that triennial reviews will provide an opportunity to supplement existing mechanisms for ensuring grantee compliance with federal regulations. Although all of the grantees reviewed had self-certified that they were complying with UMTA regulations, GAO found instances of noncompliance with charter bus regulations, school bus regulations, and procurement requirements but not with elderly and handicapped regulations. Furthermore, GAO found that the grantees' interpretations of regulations were not always consistent, and that legal rulings clarifying regulations did not reach all grantees and UMTA officials. Finally, GAO found that, when UMTA has been made aware of grantee noncompliance, it has chosen to work with grantees to bring about compliance rather than to withhold grant funds or sue to recover funds. However, UMTA does not have guidelines for handling noncompliance which ensure that the agency takes appropriate enforcement action on noncompliance cases.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Oliver W. Krueger Team: General Accounting Office: Resources, Community, and Economic Development Division Phone: (202) 275-6111


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