Compliance Assessment Methodology for Section 5311 Formula Funded Transportation Programs

1. Compliance Assessment Methodology for Section 5311 Formula Funded Transportation Programs Sponsored by Illinois Department of Transportation and the Rural Transit Assistance Center Spring Conference Presented by John Edmondson RLS & Associates, Inc.

2. Role of Compliance Reviews • Governing Principals Ensure Consistent Progress Toward SAFETEA-LU Objective • Guidance From a Variety of Federal Agencies • Federal Transit Administration (FTA) • Office of Management and Budget (OMB) • Federal Motor Carriers Safety Administration (FMCSA)

3. Compliance Assessment Methodology • Three-part Process • Desk Review • Examination of Requested Information Prior to Site Visit • Site Visit • Examination of Records, Facilities, and Vehicles • Interview • Administrative and Operational Personnel

4. Areas of Review • Grantee Review/Eligibility • Eligible Services • Budget and Audit • Grants Management and Requests • Procurement • Vehicles, Equipment, and Real Property • Civil Rights (Title VI, EEO, DBE)

5. Areas of Review • Section 504/Americans with Disabilities Act • Safety and Security • Suspension and Debarment /Integrity/Restrictions on Lobbying • Charter Services • School Bus Services

6. Areas of Review • Drug Free Workplace/Drug and Alcohol Testing • Labor • Buy America/New Bus Testing

7. Grantee Review/Eligibility • Grantee Eligibility • Appropriate Entity (County, Municipality, MTD.) as Defined by IDOT • Application Completed Appropriately • Grant Agreement Executed • Pass-Through Eligibility • Appropriate Pass-Through Arrangement • Eligible Pass-Through Entity (not-for-profit, human/social service, etc.)

8. Eligible Services • General Public Transportation Services • Exclusive Client Services are Permitted but May Not Limit Availability to the General Public • Marketing Materials • Brochures • Riders Guides • Driver Manifests

9. Eligible Services • Participation in a Locally Developed Coordination Plan • JARC/New Freedom Grants • Consistent with a Locally Developed Plan

10. Common Compliance Issues • Inadequate Access to the General Public • Seniors, Disabled, THEN General Public • Routes Cater to Clients Only • Prioritized Trips • Medical Trips Scheduled Ahead of Generic Trips

11. Budget and Audit • Chart of Accounts • Administrative, Operating, and Capital Expenses • Quarterly Requisitions • Line Item Figures • Independent Audits • Documentation Addressing Audit Findings • Two Page Annual Financial Report (IDOT Requirement) • Cost Allocation Plans

12. Budget and Audit • Transaction Documents to Ensure Proper Cost Classification • Labor • Fuel • Maintenance • Continuing Control • Cash Handling Procedures

13. Common Compliance Issues • Lack of Adequate Cash Handling Procedures • Driver Control • Adequate Reconciliation • Deposit Frequency • Local Match Funds Not Pursued

14. Grants Management and Requisitions • Accounting Transactions to Determine Eligible Costs • Concurrency Documentation • Indirect Cost Plans (if applicable) • Requisition Submittals

15. Common Compliance Issues • Requisitions Submitted Late • IDOT Requires Submittal Within 30 Days of Quarters End • Lack of Concurrence • Annual Expenses in Excess of $10,000 to Any Single Vendor

16. Procurement • Procurement/Purchasing Policies • Written Code of Conduct for Personnel Engaged in Purchasing Decisions • Recent Procurement Documents (RFP, IFB, etc.) • Recent Procurement Contracts

17. Common Compliance Issues • Inadequate/Missing Procurement Policy • No Policy • Policy Does not Meet the Standards Outlined in FTA Circular 4220.1F • Procurement Policy Not Followed • No Process Followed • “Gentlemen’s Agreements”

18. Vehicles, Equipment, and Real Property • Fleet Roster • Certification of Use • FMCSA Registration (if applicable) • Lease Agreements • Preventive Maintenance Plans • Insurance Coverage

19. Common Compliance Issues • Vehicle Safety • Fire Extinguisher • Improperly Secured • Missing/Expired Inspection Tag • Missing/Expired Insurance Card • Missing Roadside Emergency Triangles • Missing/Inadequate First Aid Kit • Missing/Inadequate Biohazard Kit • Wheelchair Securements Left in Channels

20. Common Compliance Issues • Vehicle Maintenance • Missing/Inadequate Preventive Maintenance Plan • Inadequate Pre- and Post-Trip Inspection Form • Missing Mileage on Maintenance Records

21. Common Compliance Issues • Missing Lease Agreements • Grantee to Lower Tier Subcontractor (Operator) • Missing FMCSA Registration • No Written Maintenance Plan for Lift Equipment • Pre-Trip Inspection is NOT Adequate

22. Civil Rights • Title VI • Equal Employment Opportunities • $1,000,000 in Previous Federal Fiscal Year • 50 or More Mass Transit Employees • Disadvantaged Business Enterprise • $250,000 in Contracting Opportunities

23. Common Compliance Issues • DBE Reporting Inaccurate • Missing/Inadequate DBE Plan • No EEO Officer Identified

24. Section 504/Americans with Disabilities Act • Complimentary Paratransit Plan (if applicable) • Trip Denial Logs • Fare Structure • Information Disseminated to the Public • Brochures • Riders Guides

25. Common Compliance Issues • Information Disseminated to the Public • Not Available in Alternative Formats • Inaccurate Information • Key Information Missing • Service Denials Not Tracked • Required for Complimentary Paratransit Service • Useful Tool in Demand Response Service

26. Common Compliance Issues • Consequential Behavior Not Disseminated to Passengers • No-Show Policy • Disruptive Behavior • Any Expectation Placed on the Passenger Must Be Communicated to the Passenger Along With Associated Consequences

27. Common Compliance Issues • Personal Care Attendants • MUST Ride for Free • No Certification Process • Service Animals • Must Be Permitted On-Board • No Certification Process • Common Mobility Devices

28. Safety and Security • Safety and Security Plans • HSP Template Followed • Participation in Emergency Preparedness Drills • Training Documentation • Training Policy • Master Log • Individual Log

29. Common Compliance Issues • No Written Hazard and Safety Plan • Follow the HSP Template Located at: www.transit-safety.volpe.dot.gov/Security/SecurityInitiatives • Training Records Difficult to Follow • Lack of Logs • Incomplete Policy

30. Debarment/Integrity/Restrictions on Lobbying • Certification Part of Section 5311 Application • Contracts in Excess of $100,000 • Compliance Issues are Rare

31. Charter Service • Annual Notices • Willing and Able Solicitation Responses • Cost Allocation Methodology for Recovery • Exception Certification

32. Common Compliance Issues • “No, We Don’t Do Charter” • Public Participation Process Not Followed • No Cost Allocation Plan for Recovery • Must Recover 100%

33. School Bus Service • Copies of Purchase of Service Contracts with School Systems • Driver Manifests • Compliance Issues are Rare

34. Drug Free WorkplaceDrug & Alcohol Testing • Part of Overall Compliance • Review Performed Separately by IDOT Staff • Common Compliance Issues • Identifiable Testing Pattern (mornings, Tuesdays, etc.) • No Service Agent Oversight

35. Labor • Section 5333(b) Special Warranty • Signed as Part of the Section 5311 Application • Common Compliance Issue • Warranty Not Posted

36. Buy America • Compliance Oversight Established as Part of CVP Process • No Site Review • Compliance Issues at Provider/Grantee Level are Rare

37. Implementation • Compliance Findings • 1-3 Months (Immediate Solutions Available) • 3-6 Months (Circumstantial Incidents) • 6-9 Months (Annual Evaluations) • On-going (Routine Analysis/Oversight) • Annual Element Review • Compliance Follow-Up

38. Implementation • Additional Suggestions • Recommended but not Required Action Items • Best Practices • Management Analysis Tools • IDOT Staff • RTAC Technical Assistance • RLS Technical Assistance

39. Questions??? Thank You!!! John Edmondson RLS & Associates, Inc. 300 W. Adams, 2nd Floor Chicago, IL 60606 312-793-2257