• WBZ Channel 4: MBTA Has Major Problems Collecting, Protecting Fare Box Money

    September 27, 2012 - The following content was originally published by WBZ News

    A new state audit suggests the MBTA has major lapses in collecting and protecting fare box money.

    There is a $101.7 million discrepancy in money collected from buses and trolleys from July 1, 2006 through June 30, 2011, according to the report, which was released Thursday morning by State Auditor Suzanne Bump’s office.

    The automated fare collection system recorded $225.5 million in fare box cash receipts, but the actual fare box cash receipts deposited were $123.8 million.

    Channel 4 MBTA Audit

    Click here to watch the WBZ news story.

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  • MBTA Audit: Fare Box Money Not Accurately Counted or Adequately Protected

    September 27, 2012

    State Auditor Suzanne Bump today announced an audit of the Massachusetts Bay Transportation Authority’s (MBTA) automated fare collection (AFC) system that highlighted lapses in the protection of fare money. Among the inadequacies identified were revenue variances of more than $100 million between the system’s records and the actual money collected, missing keys to fare boxes, and incomplete tracking of fare box cash. 

    Functioning properly, the AFC system should accurately record the fares collected on buses and trolleys. The MBTA could then use this record to compare to the actual cash received to ensure proper accounting of revenues collected. However, since its inception in 2005, the AFC system has not been able to properly record the intake of cash or communicate electronically with the MBTA central accounting system.  Accordingly, fare box collections have been manually counted and cannot be reconciled with any of the system’s revenue reports. 

    Specifically, for the five-year period from July 1, 2006 through June 30, 2011, actual fare box cash receipts deposited were $123.8 million whereas the AFC system recorded over $225.5 million in fare box cash receipts. This variance of more than $101.7 million demonstrates significant reliability problems in the MBTA’s collection and control of cash revenue.  Without such controls, there is inadequate assurance that all funds collected within the system are being properly safeguarded against loss, theft, or misuse.

    Press Release: MBTA Audit: Fare Box Money Not Accurately Counted or Adequately Protected
    Audit: Massachusetts Bay Transportation Authority's Automated Fare Collection System pdf format of MBTA's Automated Fare Collection System

  • $39.6 Million In Potential Savings Associated With Audit Recommendations

    September 25, 2012

    Today State Auditor Suzanne Bump released a summary of post-audit accountability reports from the third and fourth quarters of FY12, which show select audit work that has the potential to produce $39.6 million in fiscal benefit for the Commonwealth. The reports are part of an accountability initiative introduced in 2011 to monitor how audited agencies are acting on her recommendations. Since the initiative’s introduction, the reports have identified $52.4 million in potential savings.   

    “The public expects the agencies and vendors that we audit to take action on our recommendations and findings,” said Auditor Bump. “These reports demonstrate how our audits save taxpayer dollars. I applaud the auditees for their responsive actions.  Together we are making government work better.”

    Press Release: $39.6 Million In Potential Savings Associated With Audit Recommendations