For the fourth consecutive time the San Diego Metropolitan Transit System received a perfect score from the Federal Transit Administration’s (FTA) Triennial Review of the agency. That means for the last 12 years the FTA has found no deficiencies in MTS’ management of FTA funds management and program implementation.
“The Triennial Review focused on MTS’s compliance in 20 areas. No deficiencies were found with the FTA requirements in all 20 areas,” wrote FTA Acting Regional Administrator Edward Carranza in a letter to MTS Chief Executive Officer Paul Jablonski.
“The Triennial Review is a demanding process that looks into every aspect of our operation,” said Jablonski. “Continuing our track record of perfect scores is a testament to the effort we put into our everyday operations and to the attention to detail to document our processes. But none of this is accomplished without employees who are dedicated to excellence. I’m very proud of our group. This achievement is a reflection of the way our entire operation is managed.”
The purpose of the FTA’s Triennial Review is to ensure compliance with regulations and also provide a forward-looking assessment of each agency’s risk in the management and implementation of FTA grant programs. Mandated by Congress in 1982, the Triennial Review examines how recipients of Urbanized Area Formula Program funds meet statutory and administrative requirements. These formula funds represent approximately 36 percent of all grant funds awarded by FTA each year.
Key categories for the review include:
- Financial management
- Maintenance
- ADA compliance
- Title VI
- Procurement
- Disadvantaged Business Enterprise
- Legal
- Public participation requirements
- Safety and security
- Equal employment opportunities
“The preparation process started even before we received the notice from the FTA in November 2017,” said MTS Capital Grants Supervisor Eric Cheng, who has overseen the last two Triennial Reviews for MTS. “We formed a Triennial team to cover all core areas – Legal, Finance and Procurement.”
Cheng added that the MTS Procurement Department was added to the MTS Triennial Review team this year to strengthen the coordination leading up to the three day visit by FTA officials. “It was helpful to bring Procurement to the table,” said Cheng. “How we procure equipment and services using federal grant funds is a big part of the Triennial Review. Procurement brought insider knowledge of how the FTA grant funds were spent and helped us better prepare.”
Another difference this year in MTS’ preparation is a new asset tracking system. In 2016, MTS migrated from multiple financial and asset tracking systems into one Transit Asset Management Program called the SAP Enterprise Resource Planning system.
“SAP was a major step forward in terms of providing a single program acting as a window into all of the finance and other enterprise functions,” said Financial Analyst Gordon Meyer, who was on the Triennial Review team and manages MTS’ FTA grant portfolio.
The previously-used process was paper-based. Any backup documentation had to be pulled from three-ringed binders. MTS used a reference number from a printed project ledger and search for the hardcopy of an invoice in the Finance file room.
Now, with SAP in place, MTS can run a report for project expenditures, drill down into an expenditure line item, review a copy of the invoice and all contract/purchase order data, and understand the history of any transaction needed for the Triennial Review.
“The main benefit is that you now have everything in one place on the desktop computer. Asset records, project numbers, financial data, and more can all be reviewed. No file drawers need to open,” added Meyer.
In addition to adding SAP, other key points in the MTS history of success in FTA triennial reviews include:
Preparation: Since the Triennial Review is like an open book test, make sure to go over the questions in all 20 areas of the Triennial Review guide and take corrective action when deficiency is spotted prior to on-site review of FTA officials
Team Building: Create a Triennial Review working group with various backgrounds (e.g. Legal, Financial & Procurement) to oversee the Triennial Review preparation and response
Professional Development: Attend the annual FTA Triennial Review Workshop, every year and not just the year of your Triennial Review, as a way to keep up with changes in FTA requirements as they are implemented.
“Earning perfect scores over the last 12 years really says a lot about an organization,” said Jablonski. “It shows to your Board of Directors and to the public at large that you are a tightly run ship. And that can provide huge dividends as agencies work to advance transit initiatives.”
