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A Review of the Metropolitan Transit Authority
August 1998
Report # 98-067
Overall Conclusion
We reviewed the financial audit reports and related management letters for four mass transit authorities. No material weaknesses were reported in the accounting controls for these entities:
- Capital Metropolitan Transportation Authority (Austin)
- Dallas Area Rapid Transit (Dallas)
- Metropolitan Transit Authority of Harris County, Texas (Houston)
- Corpus Christi Regional Transit Authority (Corpus Christi)
Our objective was to review and comment on the annual financial audits of the Austin, Corpus Christi, Dallas, and Houston mass transit authorities. The Transportation Code, Sections 451.452 and 452.452, require the mass transit authorities' boards to deliver a copy of their annual financial audits to the State Auditor's Office (Office). The Office is to file any comments about the audits with the Legislative Audit Committee and the boards. Sections 451.457 and 452.457 of the Transportation Code direct the authorities to deliver a copy of the required performance audit reports to the Office.
Key Facts and Findings
The Austin and Houston mass transit authorities submitted performance audit reports. The report for the Austin authority, dated July 1998, included a review of the board structure, ethics, internal audit, management and financial responsibility, human resources, transit operations, procurement, facilities, and customer service. The report revealed significant problems that indicated a historical need for the board and management to be accountable for their actions and decisions. The report did note that the new board was making progress toward resolving the problems.
The performance report for the Houston authority, dated August 1997, included examinations of compliance with state law, state-defined performance indicators, and system maintenance. The report did not reveal any significant problems and management was already implementing the recommendations.
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