A Review of Financial and Performance Audit Reports for Four Mass Transit Authorities
December 2002
Report Number 03-011
Overall Conclusion
The financial statements of all four mass transit authorities (MTA) received unqualified opinions from their independent auditors for fiscal year 2001. Although the financial reports indicate that the MTAs' financial statements presented their financial positions fairly, the independent auditors identified opportunities to improve operations and controls at Capital Metro and DART. These issues, which include the following, did not materially affect the fiscal year 2001 financial statements:
- Capital Metro can improve its inventory tracking system to make it more
efficient. Additionally, Capital Metro needs to improve its process for recognizing
bus revenue to ensure consistency and proper timing.
- DART should ensure that partial deliveries are recorded accurately in the maintenance inventory system. Also, DART should restrict outside programmers' access to its information systems and schedule regular monitoring of its information systems for security violations.
In addition, Capital Metro and DART had previous audit findings. The March
1, 2002, independent auditors' Letter on Internal Controls and Accounting Procedures
for the Year Ended September 30, 2002 indicates that, as of that date, Capital
Metro had partially implemented its 2000 and 1999 audit recommendations in the
following areas: Information Systems, Procurement, Payroll Processing and Timekeeping,
and Revenue of Third Party Transportation Providers. The independent auditors
for DART indicate that DART has implemented all of its previous audit recommendations.
Key Facts and Findings
Of the four MTAs, only Capital Metro was scheduled to have a performance audit
in fiscal year 2001. According to the independent auditor:
- Capital Metro is in substantial compliance with applicable legislative requirements.
- Capital Metro's data availability and accuracy improved for performance
indicators. However, Capital Metro did not have the data it needed to calculate
two state-mandated performance indicators related to the taxicab voucher program.
- Capital Metro achieved positive performance results, but opportunities exist
to further improve the efficiency and effectiveness of transit operations.
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