BROWARD COUNTY TRANSIT DIVISION BROWARD COUNTY, FLORIDA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES SEPTEMBER 30, 2016

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1 Page 1 of 9 BROWARD COUNTY TRANSIT DIVISION BROWARD COUNTY, FLORIDA INDEPENDENT ACCOUNTANTS' REPORT ON APPLYING AGREED-UPON PROCEDURES SEPTEMBER 30, 2016

2 Page 2 of 9 One S.E. Third Avenue 110 East Broward Boulevard Suite th Floor Miami, FL Ft. Lauderdale, FL T: T: F: F: INDEPENDENT ACCOUNTANTS REPORT ON To the Board of County Commissioners & Broward County Transit Division Broward County, Florida The Federal Transit Administration (FTA) has established the following standards with regard to the data reported to it in the Federal Funding Allocation Statistics form (FFA-10 form) of the Broward County Transit Division of Broward County, Florida's annual National Transit Database (NTD) 2016 report: Assurance that a system exists to record and gather data on a continuing basis; Assurance the transit agency maintains the system for recording data in accordance with NTD definitions, i.e. the transit agency is measuring the correct data and has no systematic errors; Assurance that source documents are available to support the reported data and the transit agency maintains the system for FTA review and audit purposes for a minimum of three years following FTA s receipt and the NTD Annual Report. The data must be fully documented and securely stored; Assurance that there is a system of internal controls to ensure the accuracy of the data collection process and the recording system and that reported documents are unaltered; Assurance that a supervisor reviews and signs documents as required; Assurance that the data collection methods are those that FTA suggests; or, FTA or a qualified statistician approved the methods as being equivalent in quality and precision. Transit agencies must document and follow the collection methods; Assurance that deadhead miles, computed by taking the difference between the reported total actual vehicle miles data and the reported total actual VRM data, are accurate; Documentation that reported data have undergone analytic review to ensure that they are consistent with prior reporting periods and other facts known about transit agency operations; Documentation of the specific documents reviewed and test performed; and Documentation of how the transit agency reports purchased transportation fare revenues and contract expenditures. For example, fare revenues must include all fare revenues pertaining to PT service, and the agency reports the buyer s contract expenditures net of (not including) the PT fare revenues. 1

3 Page 3 of 9 We have applied the procedures to the data contained in the BCTD s 2016 NTD report FFA-10 forms for the fiscal year ending September 30, Such procedures, which were agreed to and specified by FTA in the Declarations section of the 2016 Policy Manual and were agreed to by BCTD, were applied to assist you in evaluating whether BCTD complied with the standards described in the first paragraph of this part and that the information included in the NTD report FFA-10 forms for the fiscal year ending September 30, 2016 is presented in conformity with the requirements of the Uniform System of Accounts (USOA) and Records and Reporting System; Final Rule, as specified in 49 CFR Part 630, Federal Register, January 15, 1993 and as presented in the 2016 Policy Manual. BCTD's management is responsible for the NTD report FFA-10 forms. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA). The sufficiency of these procedures is solely the responsibility of those parties specified in the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. This report is intended solely for your information and for FTA and should not be used by those who did not participate in determining the procedures. The procedures were applied separately to each of the information systems used to develop the reported actual Vehicle Revenue Miles (VRM), Passenger Miles Traveled (PMT) and Operating Expenditures (OE) of the Broward County Transit Division (BCTD) for the fiscal year ending September 30, 2016 for each of the following modes: Demand Response Purchased Transportation Transportation Motor/Commuter Bus Directly Operated Motor Bus Purchased Transportation The procedures performed are described below: 1. We discussed the procedures related to the system for reporting and maintaining data in accordance with the NTD requirements and definitions set forth in 49 CFR Part 630, Federal Register, January 15, 1993 and as presented in the 2016 Policy Manual with the personnel assigned responsibility of supervising the preparation and maintenance of NTD data. We determined the extent to which BCTD followed the procedures on a continuous basis. We tested that such procedures result in the accumulation and reporting of data consistent with the NTD definitions and requirements set forth in 49 CFR Part 630 Federal Register, January 15, 1993 and as presented in the 2016 Policy Manual. 2

4 Page 4 of 9 2. We inquired of the BCTD personnel regarding the retention policy that is followed by BCTD with respect to source documents supporting the NTD data reported on the Federal Funding Allocation Statistics form (FFA-10 forms). We identified all the source documents which are to be retained by BCTD for a minimum of three (3) years. For each type of source document, we selected three (3) months out of the year to determine whether the document exists for each of these periods. We tested for the retention of the following documents: Demand Response (purchased transportation) / Para-Transit: Demand Response NTD Statistics NTD S-10 Report provided by the Para-Transit section. This report reflects 100% of actual data. Motor/Commuter Bus (directly operated): Daily ride check sheets-source documentation Daily ride check summary sheets Passenger miles traveled calculation worksheets Lost time logs Lost time summary sheets Scheduled service worksheets (revenue/total vehicle miles/hours) Bus stop inventory (stops and mileages used for passenger mile calculations) NTD Ridecheck forms (Bus Stop Listing with mileage derived from Hastus software using GPS technology) Motor Bus (purchased transportation): Daily ride check sheets-source documentation Daily ride check summary sheets Passenger miles traveled calculation worksheets Lost time logs Lost time summary sheets Scheduled service worksheets (revenue/total vehicle miles/hours) Bus stop inventory (stops and mileages used for passenger mile calculations) NTD Ridecheck forms (Bus Stop Listing with mileage derived from Hastus software using GPS technology) 3

5 Page 5 of 9 3. We discussed the system of internal controls with the person responsible for supervising and maintaining the NTD data. We inquired whether individuals, independent of the individuals preparing source documents and posting data summaries, reviewed the source documents and data summaries for completeness, accuracy and reasonableness and how often such reviews were performed. We selected a random sample of the source documents and determined whether the supervisor's signatures were present as required by the system of internal controls. Demand Response (purchased transportation) / Para-Transit We reviewed the Demand Response NTD Statistics source documents and the NTD S-10 Report. Motor/Commuter Bus (directly operated) We reviewed the source document Ride Check Report. Motor Bus (purchased transportation) We reviewed the source document Ride Check Report. 4. We obtained the worksheets utilized by the BCTD to prepare the final data that are transcribed onto the Federal Funding Allocation Statistics form (FFA-10 forms). We compared the periodic data included on the worksheets to the periodic summaries prepared by the BCTD. We tested the arithmetical accuracy of the summarizations. Demand Response Motor/Commuter Bus Motor Bus (purchased transportation) / Para-Transit (directly operated) (purchased transportation) 5. We discussed the BCTD's procedure for accumulating and recording passenger miles traveled data in accordance with NTD requirements with transit agency staff. We inquired whether the procedure used is (1) a 100% count of actual passenger miles traveled or (2) an estimate of passenger miles traveled based on statistical sampling meeting FTA's 95% confidence and 10% precision requirements and documented such procedures. 4

6 Page 6 of 9 6. We discussed with BCTD staff, BCTD's eligibility to conduct statistical sampling for passenger miles traveled data every third year. We determined that BCTD was not eligible to conduct statistical sampling every third year. Demand Response (Purchased Transportation) Para-Transit Prior years sampling is no longer required since a 100% count of all passenger activity is available in a report generated through StrataGen software and shown on the NTD S-10 Report. This report is generated by Broward s Para-Transit section. We obtained BCTD s schedule calculating demand response passenger miles for Saturday, Sunday, and weekday runs from the BCTD NTD Report Worksheet prepared by the third party providers of the demand response services which included Saturday, Sunday and weekday runs, passenger boardings, and passenger miles traveled. We obtained passenger trip lengths from a 100% count of all PT trip activity. We determined that the required data was recorded, the computations were accurate, and agreed to the respective service category trip summary. We agreed the annual boardings to the PMT worksheet and agreed the total unlinked passenger trips and PMT to the Transit Agency Service Form (S-10). Motor/Commuter Bus (Directly Operated) and Motor Bus (Purchased Transportation) Sampling is performed every year for Motor/Commuter Bus Directly Operated (MCB/DO) transportation service. We obtained a description of the sampling procedures used by BCTD for estimating the passenger miles traveled. We determined that BCTD s procedures for accumulating and recording passenger miles traveled is a 100% count for DR/PT. An alternative sampling procedure has been approved by a qualified statistician for Motor/Commuter Bus/Directly Operated (MCB/DO) transportation service. Motor Bus (Directly Operated) samples are taken randomly every fourth day and every day for Commuter Bus (Directly Operated). Actual bus counts of passengers on and off are recorded to calculated average passenger miles, then projected to the estimated total. We obtained a copy of the BCTD's working papers used to select the actual sample of runs for recording passenger miles traveled data. We selected a random sample of the source documents for accumulating passenger miles traveled data and determined that they are complete (all required data are recorded) and that the computations are accurate. We selected a random sample of the accumulation periods and re-computed the accumulations for each of the selected periods. We tested the arithmetical accuracy of the summarization. We reviewed all trip survey sheets and passenger miles traveled calculation sheets for 2 days each in the months of November 2015, June 2016, and September 2016 and recomputed the accumulations for these days. We also recomputed the arithmetical accuracy of the summarization. 5

7 Page 7 of 9 We obtained Saturday, Sunday, and weekday bus statistical sampling data schedules for the fiscal year ended September 30, 2016 from the BCTD which were summarized by day of week, route number, passengers boarded, and passenger miles traveled. We determined that the required data were recorded, the computations were accurate, and agreed to the respective service category trip summary. We also agreed the selected daily boardings to the PMT worksheet and agreed the total unlinked passengers trips and PMT to the Transit Agency Service Form (S-10). 7. Demand Response (Purchased Transportation) Para-Transit VRM is calculated from vehicle data provided by the contractor logs. We verified that deadhead miles are systematically excluded from its computation in accordance with FTA s definitions. We selected the months of November 2015, June 2016, and September 2016 and recomputed the total of deadhead miles and determined the deadhead miles were excluded from the calculation of VRM. Motor/Commuter Bus (Directly Operated) BCTD utilizes bus scheduled routes (Summary of Schedules) for revenue mileage, not odometer or hubodometer readings. We verified that deadhead miles are systematically excluded from the computation. We documented the procedures used to subtract lost miles and selected 3 days each in the months of November 2015, June 2016, and September 2016 and determined the daily total of lost miles were excluded from the calculation of VRM. Motor Bus (Purchased Transportation) BCTD utilizes bus scheduled routes (Summary of Schedules) for revenue mileage, not odometer or hubodometer readings. We verified that deadhead miles are systematically excluded from the computation. We documented the procedures used to subtract lost miles and selected the months of November 2015, June 2016, and September 2016 and determined the monthly total of lost miles were excluded from the calculation of VRM. 8. We obtained the BCTD's reconciliation of operating expenses reported on the demand response, motor/commuter bus (directly operated) and motor bus (purchased transportation) (FFA-10 and F-30 forms) to total operating expenses reported in the BCTD's audited financial statements for the year ended September 30, 2016 and performed the following procedures: a. We agreed demand response operating expenses per the reconciliation to the nonfixed guide way operating expenses reported for the Federal Funding Allocation Data. b. We agreed motor/commuter bus (directly operated) and motor bus (purchased transportation) operating expenses per the reconciliation to the non-fixed guide way operating expenses reported for the Federal Funding Allocation Data. 6

8 Page 8 of 9 c. We recalculated total forms (FFA-10 forms) operating expenses by summing demand response operating expenses obtained in (a.) above, and summing motor/commuter bus (directly operated) and motor bus (purchased transportation) operating expenses to operating expenses obtained in (b.) above. d. We agreed the reconciling amount of operating expense per the reconciliation to the amount reported for the Federal Funding Allocation Data that was prepared by the Agency's management. e. We agreed adjusted operating expenses recalculated in (d.) above to total operating expenses related to Mass Transit activity included in Broward County's general ledger used to prepare the Comprehensive Annual Financial Report for the year ended September 30, Reconciling items include lease, rental and depreciation expense. 9. We inquired of the BCTD personnel regarding the amount of purchased transportation generated fare revenue. We agreed the PT fare revenue data provided by the BCTD personnel to the amount on the contractual relationship form (B-30). 10. We inquired of Management of the BCTD if Purchased Transportation provided by sellers operating fewer than one hundred vehicles in maximum service existed. Management of the BCTD stated that Purchased Transportation was provided by sellers operating fewer than one hundred vehicles in maximum service. We inquired of the BCTD's management if the purchased transportation service providers provided an Auditor Statement for Federal Funding Allocation to BCTD. Management of the BCTD stated that the Purchased Transportation providers did not provide an audited Statement for Federal Funding Allocation. As a result of not obtaining the audited Statement of Federal Funding Allocation, we performed alternative procedures such as reviewing contracts between Broward County and purchased transportation providers, and reviewing average trip length. 11. We obtained copies of all contracts for purchased transportation and ascertained that the contracts: Specified the specific public transportation services to be provided. Specified the monetary consideration obligated by BCTD. Specified the period covered by the contract and that this period is the same as the period covered by the BCTD's NTD report. 7

9 Page 9 of 9 Were signed by representatives of both parties to the contract. Executed contracts are retained for three (3) years. 12. Inquire of the person responsible for maintaining the NTD data whether BCTD provides service in more than one urbanized area (UZA), or between an UZA and a non-uza, and the procedures for allocating statistics between UZA and non-uza. BCTD does not provide service in more than one urbanized area, or between an urbanized area and a non-urbanized area. 13. We compared the data reported for the Federal Funding Allocation Data (FFA-10 forms) to comparable data for the prior report year and calculated the percentage change from the prior year to the current year. For actual vehicle revenue mile (VRM), passenger mile (PM), or operating expense (OE) data that have increased or decreased by more than 10%, we interviewed BCTD s management regarding specifics of operations that led to the increases or decreases in the data relative to the prior reporting period. We documented the specific procedures followed, documents reviewed, and tests performed in the work papers. We were not engaged to, and did not conduct an examination, the objective of which would be the expression of an opinion whether or not the BCTD complied with the standards described above and that the information included in the NTD report FFA-10 forms for the year ended September 30, 2016 is presented fairly, in all material respects, with the requirements of the USOA and Records and Reporting System; Final Rule, as specified in 49 CFR Part 630, Federal Register, January 15, 1993; and as presented in the 2016 Policy Manual. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters may have come to our attention that would have been reported to you. This report is intended solely for the information and use of the BCTD and the FTA and is not intended to be and should not be used by anyone other than those specified parties. March 28,