Purpose

To determine whether the Rochester-Genesee Regional Transportation Authority’s discretionary spending complied with its guidelines and was reasonable, adequately supported, and properly approved. Our audit period was April 1, 2010 to March 31, 2012.

Background

The Rochester-Genesee Regional Transportation Authority (Authority) was created in 1969. Its mission is to provide and continuously improve public transportation services in the greater Rochester area. The Authority provides public transportation services throughout the seven counties of Monroe, Genesee, Livingston, Orleans, Wayne, Wyoming, and Seneca. To accomplish its mission, the Authority incurs direct costs for specific program purposes, and it incurs indirect or “discretionary costs” that support overall objectives.

Each public authority should have formal policies and procedures specifying the types of discretionary costs that are appropriate and the dollar thresholds, supporting documentation, and formal approvals that are necessary to be accountable for such costs.

Key Finding

The Authority does not have policies to determine the appropriateness and reasonableness of many types of discretionary expenses, including meetings and other events, memberships in professional organizations, sponsorships, and training.

Key Recommendation

Examine written policies and procedures to determine if they adequately address potentially questionable discretionary spending, including definitions of costs and necessary justifications, dollar thresholds, formal approvals, and supporting documentation.

Other Related Audits/Reports of Interest

Battery Park City Authority: Selected Aspects of Discretionary Spending (2012-S-158)
State University Construction Fund: Selected Aspects of Discretionary Spending (2013-S-14)