Since March 2020, the Federal Transit Administration’s (FTA) funding has increased significantly with the about $69.5 billion it received to help U.S. transit systems mitigate the impacts of the Coronavirus Disease 2019 (COVID-19) pandemic. In April 2021, FTA announced that it was enhancing its oversight program to address challenges created by the magnitude of the funding, as well as changes in how recipients may use the funds.
Our past work has shown that large amounts—coupled with unique requirements or short deadlines to provide funds—can expose gaps in controls. As such, we plan a two-phase approach to our review of FTA’s COVID-19 relief funding oversight. This first audit will assess the design of FTA’s controls to address (1) COVID-19 relief funding requirements and (2) oversight risks throughout the grant lifecycle. The second audit will focus on implementation of these controls.