Purpose

To determine whether the whether the Rochester-Genesee Regional Transportation Authority (Authority) is purchasing the correct type of fuel, paying the proper amount for the fuel purchased, receiving the correct amount of fuel, and keeping accurate records of the supply and distribution of fuel. The audit covers the period April 1, 2012 through March 31, 2014.

Background

The Authority’s eight regional subsidiaries provide public transportation services in Monroe, Genesee, Livingston, Orleans, Wayne, Wyoming, and Seneca counties. During our scope period, the Authority had contracts with private fuel companies to supply diesel and unleaded regular gas to the two subsidiaries that account for most of its fuel purchases. In addition, the Authority had separate agreements with four counties, a school district, and a private company to supply fuel to its six other regional subsidiaries. The Authority spent over $7.5 million and $7.3 million on fuel in fiscal years 2012-13 and 2013-14, respectively.

Key Findings

• We found the Authority generally had adequate controls and accountability over fuel procurement, delivery, storage, and usage. However, we identified certain weaknesses in some of the subsidiaries’ fuel purchasing and monitoring practices.
• While we found the Authority purchased the correct type of fuel for buses, it spent approximately $11,000 more than necessary on fuel for two subsidiaries.

Key Recommendations

• Implement the recommendations outlined in report to strengthen subsidiaries’ fuel purchasing and monitoring practices.
• Re-evaluate subsidiary fuel agreements to determine if more competitive rates are available.

Other Related Audit/Report of Interest

MTA Bus Company and New York City Transit: Selected Aspects of Vehicle Fuel Procurement and Use (2008-S-175)