What is a Triennial Performance Review? Results of the Triennial Performance Review

Transcription

1 Triennial Performance Review for FY 009/0 FY 0/ May, 0 What is a Triennial Performance Review? A Triennial Performance Review (TPR), also known as a Triennial Performance Audit (TPA), serves as a systematic process for evaluating the effectiveness, efficiency, and economy of a transit organization. A TPR, which takes place every three years, is required for every Regional Transportation Planning Agency (RTPA) and transit operator funded through the State of California s Transportation Development Act (TDA). Each review must be performed in accordance with California s Public Utilities Code (PUC) Section 996, the procedures of which are set forth in the Performance Audit Guidebook for Transit Operators and Transportation Planning Entities published by Caltrans, as well as Government Audit Standards published by the U.S. Comptroller General. As the entity responsible for the disbursement of TDA funding, LACMTA is statutorily required to designate a third-party entity to conduct a TPR of itself and those operators to which it allocates TDA funding. For the Triennial Performance Review covering FY 009/00 FY 0/0, LACMTA selected Moore & Associates as the independent third-party auditor. The Triennial Performance Review is intended to be a constructive process with a focus on improving the performance and efficiency of RTPA and operators alike. This document provides a summary of the findings and recommendations arising from the Triennial Performance Reviews of the RTPA as well as the 7 operators included in the project scope. Results of the Triennial Performance Review Of the 7 operators, only one had no findings reported. Two operators had only compliance findings, while six had only functional findings (and were deemed in compliance with TDA). The remaining eight operators, along with the RTPA, had both compliance and functional findings. All operators were in compliance with respect to farebox recovery. The most common compliance findings among operators pertained to timely submittal of fiscal audits/cafrs (6 operators) and State Controller Reports ( operators) and proper calculation of the FTE metric (9 operators). Several additional operators were able to correct deficiencies in reporting and/or provide additional data that eliminated some compliance findings prior to the completion of their prefinal drafts. The most common functional findings pertained to productivity (as defined by an unsubsidized farebox recovery below 0 percent) (8 operators) and consistency in reporting to the three reporting entities (National Transit Database, the LACMTA, and State Controller) ( operators). []

2 Triennial Performance Review for FY 009/0 FY 0/ May, 0 During the review period, transit operators throughout Los Angeles County experienced a decrease in ridership, which followed an increase across the prior review period. This is in contrast with national ridership trends, which dropped sharply during the prior review period and began rising again slowly during the current review period., 60,000,000 6,7, Metro Operators 6,00,000 6,,98 National Ridership (in 000s) 60,000,000 6,0,6 6,000,000 60,000, ,000,000 60,880,007,800,000,86,978 90,000,000 87,77,87,600,000,97,87,6,7 80,000,000 70,000,000 7,7,80 8,8,6,00,000,,60,,06 60,000,000,00,000 0,000, ,000, Another interesting trend pertains to Los Angeles-area retail gas prices as they related to transit ridership. Gas prices peaked in 008, fell in 009, and steadily increased throughout the review period. Ridership peaked in 009 and fell until 0, when it began rebounding. Rising gas prices did not appear to influence average transit ridership in the Los Angeles area. A summary of compliance and functional findings and recommendations for all 7 operators and the RTPA is presented on the following pages. Note: National ridership is per calendar year, while Metro municipal operator ridership is by fiscal year. Sources: National Ridership APTA Ridership Report Archive, Metro Municipal Operators individual operator NTD reports (as provided by the operators). U.S. Energy Information Administration, 0. []

3 Triennial Performance Review for FY 009/0 FY 0/ May, 0 Antelope Valley Transit Authority The Transit Operators Financial Transaction Report for FY 009/0 was submitted beyond the PUC-established timeframe. Submit all Transit Operator Financial Transaction Reports to the State Controller within the PUC-established timeframe. Financial audits for FY 009/0 and FY 00/ were submitted beyond the PUCestablished timeframe. Submit all financial audits within the PUC-established timeframe. Failed to calculate the FTE metric for its Transit Operators Financial Transaction Reports according to the PUC definition (labor hours divided by,000) as mandated by the State Controller. Calculate the FTE metric according to the PUC definition (labor hours divided by,000) for reporting on Transit Operators Financial Transaction Report filings to the State Controller. AVTA did not split out Specialized Transit Service on its State Controller Reports. File a separate Transit Operators Financial Transaction Report (TOR) for AVTA s Specialized Services (Dial-A-Ride program). The cash counting room at the contract operator s El Monte yard lacks appropriate security measures. Redesign the City s service delivery model as a traditional two-tiered (fixedroute and demand-response) transit system. Develop and implement a formal marketing program to support the new service delivery model. Enhance security measures at contract operator s counting room. The City does not formally track customer comments/service concerns. Develop a formal customer feedback/complaint process. City of Arcadia cost (which continues to stand at around percent). Although the City received satisfactory ratings for its California Highway Patrol terminal inspections for all three years covered by the audit review, CHP reports for FY 009/0 and FY 00/ listed a few concerns with the administration of the contract operator s Maintenance Program and Driver record-keeping procedures Work with the operations contractor to ensure inspections and vehicle maintenance of its fleet are systematically conducted at regular intervals and vehicle records are signed and include necessary vehicle information. City of Claremont cost (which continues to stand at around 0 percent). The growing demand for individual-ride service continues to elevate concerns on the quality of service anticipated in future years. Cash (fare revenue) is counted in an unsecure shared office space at the operations contractor s facility. The 0 CHP terminal inspection report revealed the carrier did not conduct general Public Paratransit Vehicle (GPPV) inspections within the -day timeframe. Develop and implement a formal marketing program. Hire an outside consultant to conduct performance assessments. Secure cash-handling facility when counting group-ride fares. Ensure GPPV inspections are conducted within the -day interval recommended. Inconsistencies with performance data were identified within the Transit Performance Measurement and State Controller reports. Invest in data management software to compile all performance data reported within Transit Performance Measurement, National Transit Database, and Transit Operators Financial Transaction Reports. City of Commerce The City failed to file its annual fiscal and compliance audits with the RTPA and State Controller prior to the established PUC deadline for any year during the Submit fiscal audits in a timely manner. triennium. The City did not report FTE properly to the State Controller given it reported actual person-count rather than employee hours divided by,000. Properly calculate FTE for inclusion in the Transit Operators Financial Transaction Report. Enhance program promotion through the development of a strategic marketing Enhance program promotion through the development of a strategic plan with a five-year horizon. marketing plan with a five-year horizon. Identify sustainable program growth strategies. Identify sustainable program growth strategies. Frequent inconsistencies exist with the performance data reported within the Improve the consistency of data reported to each external entity []

4 Triennial Performance Review for FY 009/0 FY 0/ May, 0 City of Culver City The City did not report FTE properly to the State Controller given it reported actual person-count rather than employee hours divided by,000. Properly calculate FTE for inclusion in the Transit Operators Financial Transaction Report. City of Gardena The City advised Metro it would be submitting its CAFRs for FY 009/0 and FY 00/ late and requested extensions. For FY 009/0, Metro responded no formal extension was needed, while in FY 00/, Metro's response was not documented. The City received significant local subsidies and auxiliary revenues throughout the review period. In calculating Farebox Recovery ratio, local subsidies and auxiliary revenues provide a cushion that enables the City to meet the TDA-mandated 0 percent ratio for urbanized operators. Absent local subsidies, however, the City remains below the 0-percent threshold. Frequent inconsistencies exist with the performance data reported within the The City should move ahead with development and implementation of a strategic marketing plan as outlined in the prior audit report. The City did not calculate Full-time Equivalent (FTE) according to the definition included in PUC 997(j) in its State Controller filings. The data reported on the Transit Operators Financial Transaction Reports is an actual person-count rather the total number of hours divided by,000. However, given the City reports this data correctly elsewhere and has already identified this problem and will be submitting corrected TORs to the State Controller, we do not submit this as a compliance finding at this time. We feel this is more appropriate as a functional finding, intended to document this inaccuracy and explain the presence of incorrect State Controller filings. Work with auditor so that CAFRs are submitted within the PUC-established timeframe. Maintain documentation regarding requests for extensions when CAFRs must submitted late. The City should strive to improve its fixed-route farebox recovery to the point where auxiliary revenue is not necessary to meet the TDA minimum standard. Improve the consistency of data reported to each external entity. 6 Develop and implement marketing plan to reverse declining ridership trend. Amend all State Controller filings for FY 009/0 through FY 0/ to reflect properly calculated FTE data (total labor hours divided by,000 rather than actual person-count). The City did not calculate the Full-Time Equivalent indicator according to PUC guidelines (i.e., dividing by,000 hours instead of,080). In addition, FTE data were not included in Transit Operators Financial Transactions Reports. City of La Mirada cost (which continues to stand at around three to four percent). Include accurate Full-Time Equivalent (FTE) data within Transit Operators Financial Transaction Reports and TPM Reports. Improve the accuracy of data included within the Transit Operations Financial Transaction Reports. Implement a fare increase. Develop and implement an 8- to -month Marketing Plan to support increases in ridership and fare revenue. Customers hand fares directly to drivers, who place the fares collected into a zippered pouch. Fares are transported to the contractor s safe by a single individual. This creates opportunities for inaccuracies in accounting and reconciliation. While fare collection is the contractor's responsibility, the City should request a reassessment of fare collection practices to ensure secure collection and transportation of cash fares. []

5 Triennial Performance Review for FY 009/0 FY 0/ May, 0 City of Montebello The City did not file its FY 009/0 Transit Fund financial audit report with the RTPA and State Controller within the established Public Utilities Code timeframe (80 days following the end of the fiscal year, absent approval of a 90-day extension). The City did not calculate FTE data reported on its Transit Operators Financial Transaction Report per the PUC guideline as it does not include contractor hours in its FTE calculations. Inaccuracies were noted in the calculation of performance measures for the FY 00/ LACMTA filing (errors were made as data was transferred from the NTD report to the TPM report). Submit all Transit Fund financial audit reports prior to the deadline established by PUC guidelines. Include contractor hours when reporting Full-Time Equivalent employee data to the State Controller. Utilize a single database for the collection of data and cross-check reports to all three entities (LACMTA, NTD, and the State Controller) to ensure they are consistently reported. City of Norwalk The City failed to accurately calculate the Full-Time Equivalent (FTE) indicator as it did not include contractor hours in its FTE calculations. cost (which ranged between and percent during the triennium). Include contractor hours when calculating Full-Time Equivalent employee data. Develop and implement a five-year marketing plan focused on expanding the traditional transit rider customer base as part of an effort to increase ridership and fare revenue. Data provided within the Transit Operators Financial Transaction Reports (TOR) had inconsistencies when compared with Transit Performance Measurement (TPM) and National Transit Database (NTD) reports. Improve the accuracy of performance data reported within the Transit Operators Financial Transaction Reports (TOR). The City does not track trip denials on its Dial-A-Ride program. Track trip denials for Norwalk Transit System s Dial-A-Ride service. The City s definition of senior appears to be ambiguous, with different requirements for the fixed-route and demand-response services. Streamline the definition of senior so the same metric applies to both fixed-route and demand-response services. City of Redondo Beach cost (which ranged between and percent during the triennium). Implement the Beach Cities Transit marketing plan developed in November 0. The City did not segregate Specialized Transit Service performance data on its State Controller Reports. There are some inconsistencies between financial data reported to external entities. There are concerns regarding security at the City s transit maintenance and storage facility. File a separate Transit Operators Financial Transaction Report (TOR) for the City s Specialized Services (demand-response taxi program). Report data consistently on all filings with reporting entities. Improve security at the City s transit maintenance and storage facility. City of Santa Clarita The Transit Operators Financial Transaction Report for FY 009/0 was submitted beyond the PUC-established timeframe. Submit all Transit Operator Financial Transaction Reports to the State Controller within the PUC-established timeframe. Financial audits for all three years of the triennium were submitted beyond the PUC-established timeframe. Data is not always reported consistently to all three entities (NTD, LACMTA, and State Controller). Submit all financial audits within the PUC-established timeframe. Ensure data is reported accurately and consistently to all reporting entities.. The City did not report FTE data properly to the State Controller given it does not include contractor hours in its filings. City of Santa Monica Ensure FTE reporting complies with PUC 997(j). []

6 Triennial Performance Review for FY 009/0 FY 0/ May, 0 City of Torrance The City received significant local subsidies and auxiliary revenues throughout the review period. In calculating Farebox Recovery ratio, local subsidies and auxiliary revenues provide a cushion that enables the City to meet the TDA-mandated 0 percent ratio for urbanized operators. Absent local subsidies, however, the City remains below the 0-percent threshold. Some inconsistencies exist with the performance data reported within the The City should strive to improve its fixed-route farebox recovery to the point where auxiliary revenue is not necessary to meet the TDA minimum standard. Improve the consistency of performance data reported within the National Transit Database (NTD), Transit Performance Measurement (TPM), and Transit Operators Financial Transaction (TOR) Reports. Foothill Transit Some inconsistencies exist with the performance data reported within the Improve the level of consistency of performance data reported within the National Transit Database (NTD), Transit Performance Measurement (TPM), and Transit Operators Financial Transaction (TOR) Reports. LADOT The Transit Operators Financial Transaction Reports for FY 009/0 and FY 0/ were submitted beyond the PUC-established timeframe. Financial audits for all three years of the review period were submitted beyond the PUC-established timeframe. The accurate reporting of the Full-time Equivalent (FTE) metric to the State Controller according to PUC guidelines during the period covered by this review could not be verified. LADOT received far more revenue from local subsidies and auxiliary revenues than it did from paid fares throughout the review period. In calculating Farebox Recovery ratio, local subsidies and auxiliary revenues provide a cushion that enables LADOT to exceed the 0 percent threshold mandated by the PUC for TDA recipients in urbanized areas. Absent local subsidies, however, LADOT remains below the 0-percent threshold. While this is not a compliance matter, as LADOT does not receive TDA funds, it is good practice to strive to meet or exceed the benchmark of 0 percent required of the lion s share of urbanized operators throughout the state. Data reported within LADOT s Transit Performance Monitoring (TPM) reports, the National Transit Database (NTD), and Transit Operator Financial Transaction Reports (TOR) have several inconsistencies and inaccuracies. Submit all Transit Operator Financial Transaction Reports to the State Controller within the PUC-established timeframe. Submit all financial audits within the PUC-established timeframe. Ensure FTE data is accurately calculated and reported to the State Controller. LADOT should improve its productivity to the point where auxiliary revenue is not necessary to meet a 0 percent farebox recovery ratio. Ensure data reported to external entities are accurately calculated and reported, as well as includes all required performance-related data. Long Beach Transit No findings or recommendations LA Metro - Operations Failed to file FY 0/ annual fiscal and compliance audit with the RTPA and Ensure future fiscal audits are submitted by the stipulated deadline. State Controller prior to the established PUC deadline. Did not report FTE accurately to the State Controller given it does not include Properly calculate FTE for inclusion in the Transit Operators Financial contractor hours. Transaction Report. Some inconsistencies exist with the performance data reported within the Improve the consistency of performance data reported within the National Transit Database (NTD), Transit Performance Measurement (TPM), and [6]

7 Triennial Performance Review for FY 009/0 FY 0/ May, 0 LA Metro - RTPA Some of the public transit operators to which the LACMTA allocates TDA funding failed to submit their annual fiscal audits within the TDA-mandated 80-day window. Does not effectively use the Short Range Transit Plan process to optimally benefit its municipal operators (continued from prior review). Monitor operators to ensure future fiscal audits are submitted by the stipulated deadline. Use the municipal operator Short Range Transit Plan process to benefit the region as a whole through comprehensive reviews and promoting coordination among operators. Has not sufficiently clarified its role as an RTPA (continued from prior review). Further clarify LACMTA s role as RTPA for Los Angeles County. Does not provide support to municipal operators in regard to reporting and preparation for the Triennial Performance Review. Provide a higher level of administrative support for operators regarding annual and required reporting. Provide a higher level of support for operators in advance of the next Triennial Performance Review cycle. [7]