Report on the Central Artery/Tunnel Project May 2007 Finance Plan Update
On March 31, 2008, we issued our report regarding the Central Artery/Tunnel Project May 2007 Finance Plan Update (Plan) submitted by the Massachusetts Turnpike Authority (MTA). The purpose of this Plan is to provide senior program and oversight officials with information to track the Project’s estimated cost and the financing and cash flows needed to meet Project obligations. Our objective in reviewing the 2007 Plan was to determine whether it complied with the Federal Highway Administration (FHWA) Guidance. The latest Plan forecast a total Project cost of $14.798 billion. As of January 2008, $128 million in Federal funds remained unobligated. Our audit found that the MTA’s Plan generally complied with the FHWA Guidance except that it should be adjusted to correct understated insurance costs and reduce the amount of Federal funds available for obligation. Consequentially, the MTA will need to identify $37.7 million in non–Federal resources to complete the Project. In addition, the Plan’s omission of some of the necessary disclosures and assessments must be corrected to achieve full compliance with FHWA Guidance.