[Federal Register: March 26, 2007 (Volume 72, Number 57)]
[Proposed Rules]
[Page 14061-14066]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26mr07-13]
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DEPARTMENT OF TRANSPORTATION
Federal Transit Administration
49 CFR Part 630
[Docket No: FTA-2007-27319]
RIN 2132-AA94
National Transit Database: Amendment To Reporting Requirements
and Non-Substantive Technical Changes
AGENCY: Federal Transit Administration (FTA), DOT.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This notice of proposed rulemaking (NPRM) provides interested
parties with the opportunity to comment on proposed changes to the
Federal Transit Administration's (FTA) National Transit Database (NTD)
Uniform System of Accounts and Reporting System. The proposed changes
will require recipients of formula grants for other than urbanized
areas (Nonurbanized Area Formula Grants) to report annual transit data
to the NTD. As mandated by the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU), this
proposed rule will also require the annual reporting of rural transit
data as a condition for receiving grant awards under the Nonurbanized
Area Formula Program.
Currently, FTA requires recipients of FTA Urbanized Area Formula
Grants to provide an annual report to the Secretary of Transportation
via the NTD using a uniform system of accounts and reporting system.
This proposed rule will not affect existing mandatory reporting
requirements for recipients of Urbanized Area Formula grants.
In addition, this proposed rule makes non-substantive changes,
technical corrections, and conforming amendments to 49 CFR part 630,
``Uniform System of Accounts and Reporting System.'' Technical
corrections and conforming amendments are needed to update the
regulation and make certain provisions clearer. These changes will have
no substantive effect on the regulated public.
DATES: Comments must be received on or before April 25, 2007. Late
filed comments will be considered to the extent practicable.
ADDRESSES: You may submit comments by any of the following methods:
Federal Rulemaking Portal: Go to http://www.regulations.gov. Follow
the online instructions for submitting comments.
Web site: http://dms.dot.gov. Follow the instructions for
submitting comments on the DOT electronic docket site.
Fax: 202-493-2251.
Mail: Docket Management Facility; U.S. Department of
Transportation, 400 Seventh Street, SW., Nassif Building, PL-401,
Washington, DC 20590-0001.
Hand Delivery: Room PL-401 on the plaza level of the Nassif
Building, 400 Seventh Street, SW., Washington, DC, between 9 a.m. and 5
p.m., Monday through Friday, except Federal holidays.
Instructions: When submitting comments electronically to the
Department's Docket Management System (DMS) Web site located at http://dms.dot.gov
, you must use docket number 27319. This will ensure that
your comment is placed in the correct docket. If you submit comments by
mail, you should submit two copies and include the above docket number.
Note that all comments received will be posted, without change, to
http://dms.dot.gov including any personal identifying information. This
means that if your comment includes any personal identifying
information, such information will be made available to users of DMS.
You may review the Department's complete Privacy Act Statement in the
Federal Register published on April 11, 2000 (65 FR 19477) or you may
visit http:// dms.dot.gov.
FOR FURTHER INFORMATION CONTACT: For program issues, Nancy Ody, Office
of Budget and Policy, (202) 366-0177 (telephone); (202) 366-7989 (fax);
or nancy.ody@dot.gov (e-mail). For legal issues, Shauna Coleman, Office
of the Chief Counsel, (202) 366-4011 (telephone); (202) 366-3809 (fax);
or shauna.coleman@dot.gov (e-mail).
SUPPLEMENTARY INFORMATION:
I. Background
The National Transit Database (NTD) is the Federal Transit
Administration's (FTA) primary national database for statistics on the
transit industry. Section 3033 of the Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU)
[Pub.
[[Page 14062]]
L. 109-59 (August 10, 2005)] amended the National Transit Database
provisions under 49 U.S.C. 5335 to establish annual reporting
requirements for grantees under 49 U.S.C. 5311, Formula grants for
other than urbanized areas (Nonurbanized Area Formula Grants), while
maintaining existing NTD annual reporting requirements for grantees
under 49 U.S.C. 5307, Urbanized Area Formula grants. This rule proposes
to revise 49 CFR part 630, the Uniform System of Accounts and Reporting
System, to conform with 49 U.S.C. 5335, as amended by section 3033 of
SAFETEA-LU.
Section 3013(b) of SAFETEA-LU amended 49 U.S.C. 5311(b)(4) to
require that each grant recipient receiving Nonurbanized Area Formula
Program Grants submit an annual report containing information on
capital investment, operations, and service provided with grant funds
from this program. The information contained in the report must include
the following: total annual revenue; sources of revenue; total annual
operating costs; total annual capital costs; fleet size and type, and
related facilities; revenue vehicle miles; and ridership. Section
5335(b) now requires that each recipient of assistance of Section 5311
funds, or any person that will receive benefits directly from these
funds, be subject to these reporting requirements. The mandatory
reporting criteria will assist FTA to understand the effectiveness of
Nonurbanized Area Formula Grants in improving rural public
transportation. These data are similar to those already collected by
FTA for recipients of Urbanized Area Formula Grants (Section 5307) but
are streamlined for rural recipients. Section 5335(b) continues to
require reporting from recipients and beneficiaries of assistance under
Section 5307.
On November 30, 2005, FTA published in the Federal Register (70 FR
71950, November 30, 2005) the procedures and start dates for mandatory
annual reporting that State departments of transportation must follow
when submitting rural transit data to FTA. These rural transit data
reporting procedures and the mandatory reporting dates remain in effect
for Fiscal Year (FY) 2007. The 2006 NTD Rural Data Reporting Manual and
reporting instructions can be reviewed on the NTD Web site, http://www.ntdprogram.gov.
FTA updates the Reporting Manual annually and based
the 2006 Reporting Manual on a voluntary model developed in
coordination with State departments of transportation. FTA is currently
revising the 2007 Reporting Manual, in consultation with the State
departments of transportation, to reflect States' experiences in using
the voluntary rural reporting module in 2006, and to incorporate
additional data points required in SAFETEA-LU. FTA will propose changes
to the reporting requirements in the Federal Register for notice and
comment in the spring of 2007.
As previously stated, the information requested from recipients and
beneficiaries of Nonurbanized Area Formula Grants is similar to data
collected by FTA for Urbanized Area Formula Grants. Section 5335(a)
authorizes FTA to request and receive appropriate information from any
source to include in its reporting requirements for recipients of
Urbanized Area Formula Grants and Nonurbanized Area Formula Grants. As
stated in the Conference Report accompanying SAFETEA-LU, Congress
expected that the data collection requirements for NTD would be
``tailored to the smaller size of the typical public transportation
system in rural areas, while still providing enough information to
judge the condition and performance of our Nation's network of rural
public transportation systems.'' (H.R. Rep. No. 109-203, at 943 (2005)
(Conf. Rep.). FTA seeks to follow Congressional direction in our rural
data collection efforts.
FTA recognizes that many recipients and beneficiaries of Section
5311 program funds believe that the newly-enacted reporting
requirements are onerous. To address these concerns, FTA would like to
offer an explanation as to why these reporting requirements are
requested and how they will be used regarding current and future
funding of rural public transportation. First, SAFETEA-LU significantly
increases the annual apportionment amounts for the Nonurbanized Area
Formula Grant program beyond TEA-21 enacted funding levels. In order to
determine the effectiveness of program apportionment increases, FTA
will use the information on rural public transportation programs to
gauge how the increased apportionments affect recipients and
beneficiaries of Section 5311 grants. Second, the collection of
reporting data for this program will help FTA measure progress in
addressing rural public transportation service needs. Only limited
information on rural public transportation needs currently exists, and
it cannot be used to analyze trends over time. The information required
by Section 5311(b)(4) will allow FTA to better assess the needs of
rural transit services. These data will be used to identify the sources
of revenue used by rural transit providers, how they are being
expended, the services that they are providing and the performance of
these services in providing rural transportation.
FTA is accepting comments on substantive amendments that would
implement the annual reporting requirements for Nonurbanized Area
Formula grant recipients and beneficiaries. The proposed rule also
contains technical corrections and conforming amendments, such as
changes to the statutory references. Pursuant to 5 U.S.C. 553(b)(3)(A),
such changes are ``interpretative'' in nature and, as such, FTA is not
required to accept or consider comments on them. Therefore, the public
should refrain from commenting on these interpretative changes to 49
CFR part 630.
Regulatory Process Matters
Executive Order 12866
Executive Order 12866 requires agencies to regulate in the ``most
cost-effective manner,'' to make a ``reasoned determination that the
benefits of the intended regulation justify its costs,'' and to develop
regulations that ``impose the least burden on society.'' This proposed
rule would amend the NTD reporting and recordkeeping requirements to
require recipients of Nonurbanized Area Formula Grants to report annual
transit data to the NTD following previously established guidelines for
a voluntary State-based rural data module developed in consultation
with State departments of transportation.
FTA has preliminarily determined that this action is not a
significant regulatory action under section 3(f) of Executive Order
12866, and anticipates that the direct economic impact of this
rulemaking would be minimal. Section 5335, as amended by SAFETEA-LU,
mandates the additional requirement that recipients and beneficiaries
of Nonurbanized Area Formula Grants report annual transit data to the
NTD. FTA considers this proposal as a way to clarify existing
regulatory requirements, and believes that the proposed changes would
not adversely affect, in any material way, any sector of the economy.
In addition, the proposed changes would not interfere with any action
taken or planned by another agency and would not materially alter the
budgetary impact of any entitlements, grants, user fees, or loan
programs.
[[Page 14063]]
Executive Order 13132
Executive Order 13132 requires agencies to assure meaningful and
timely input by State and local officials in the development of
regulatory policies that may have a substantial, direct effect on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government. FTA has analyzed this proposed action in
accordance with the principles and criteria contained in Executive
Order 13132, and FTA has determined that this proposed action would not
have sufficient implications to warrant the preparation of a federalism
assessment. FTA has also determined that this proposed action would not
preempt any State law or State regulation or affect States' abilities
to discharge traditional government functions. FTA invites State and
local governments with an interest in this rulemaking to comment on the
effect that adoption of specific proposals may have on State or local
governments.
Executive Order 13175
Executive Order 13175 requires agencies to assure meaningful and
timely input from Indian tribal government representatives in the
development of rules that significantly or uniquely affect Indian
communities and that impose ``substantial and direct compliance costs''
on such communities. This proposed rule would require tribes that are
recipients to report to the NTD. In addition, this proposed rule would
require tribes that are subrecipients to report NTD data to the State.
However, FTA has analyzed this proposed rule under Executive Order
13175 and believes that the proposed action would not have substantial
direct effects on one or more Indian tribes; would not impose
substantial direct compliance costs on Indian tribal governments; and
would not preempt tribal laws. Therefore, a tribal impact statement is
not required. We invite Indian tribal governments to provide comments
on the effect that adoption of specific proposals may have on Indian
communities.
Regulatory Flexibility Act
Under the Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et
seq.), FTA must consider whether a proposed rule would have a
significant economic impact on a substantial number of small entities.
``Small entities'' include small businesses, not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields, and governmental jurisdictions with
populations under 50,000. If your business or organization is a small
entity, and if adoption of proposals contained in this notice could
have a significant economic impact on your operations, please submit a
comment to explain how and to what extent your business or organization
could be affected.
Paperwork Reduction Act
Under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501
et seq.) (Pub. L. 104-13, 109 Stat. 163), FTA may not conduct or
sponsor, and a person is not required to respond to or may not be
penalized for failing to comply with, a collection of information
unless it displays a currently valid Office of Management and Budget
(OMB) control number.
FTA paperwork collection number 2132-0008 covers the information
collection requirements of this proposed rule. OMB approved an
extension without change of the collection number. The new expiration
date of this collection number is August 31, 2008.
Unfunded Mandates Assessment
This proposed rule would not impose unfunded mandates as defined by
the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, 109 Stat. 48).
This proposed rule will not result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$128.1 million or more in any one year (2 U.S.C. 1532). Further, in
compliance with the Unfunded Mandates Reform Act of 1995, FTA will
evaluate any regulatory action that might be proposed in subsequent
stages of the proceeding to assess the effects on State, local, and
tribal governments and the private sector.
National Environmental Policy Act
The National Environmental Policy Act of 1969, (42 U.S.C. 4321-
4347), requires Federal agencies to consider the consequences of major
Federal actions and prepare a detailed statement on actions
significantly affecting the quality of the human environment. The
proposed action would not have any effect on the quality of the
environment under the National Environmental Policy Act of 1969.
Privacy Act
Anyone is able to search the electronic form for all comments
received into any of our dockets by the name of the individual
submitting the comments (or signing the comment, if submitted on behalf
of an association, business, or labor union). You may review DOT's
complete Privacy Act Statement in the Federal Register published on
April 11, 2000 (65 FR 19477), or you may visit http://dms.dot.gov.
List of Subjects in 49 CFR Part 630
Accounting, Uniform System of Accounts.
For the reasons discussed in the preamble, the Federal Transit
Administration proposes to revise 49 CFR Part 630 as follows:
PART 630--REPORTING AND RECORDKEEPING REQUIREMENTS
Subpart A--General
Sec.
630.1 Purpose.
630.2 Scope.
630.3 Definitions.
630.4 Requirements.
630.5 Failure to report data.
630.6 Late and incomplete reports.
630.7 Failure to respond to questions.
630.8 Questionable data items.
630.9 Notice of FTA action.
630.10 Waiver of reporting requirements.
630.11 Data adjustments.
630.12 Display of OMB control numbers.
Appendix A--Overview and Explanation of the FTA National Transit
Database Uniform System of Accounts and Reporting System
Authority: 49 U.S.C. 5301-5340 and 49 CFR 1.51.
Sec. 630.1 Purpose.
The purpose of this part is to prescribe requirements and
procedures necessary for compliance with the National Transit Database
Uniform System of Accounts and Reporting System mandated by 49 U.S.C.
5335, and to set forth the procedures for addressing a reporting
agency's failure to comply with these requirements.
Sec. 630.2 Scope.
This part applies to all applicants and any person that receives
benefits directly from a grant under 49 U.S.C. 5307 or 5311.
Sec. 630.3 Definitions.
(a) Except as otherwise provided, terms defined in 49 U.S.C. 5301
et seq. are used in this part as so defined.
(b) Terms defined in the current edition of the National Transit
Database Uniform System of Accounts and the annual Reporting Manual are
used in this part as so defined.
(c) For purposes of this part:
Administrator means the Federal Transit Administrator or the
Administrator's designee.
Applicant means an applicant for assistance under 49 U.S.C. 5307 or
5311.
[[Page 14064]]
Assistance means Federal financial assistance for the acquisition,
construction, or operation of public transportation services.
Beneficiary means any organization operating and delivering transit
services that receives benefits from assistance under 49 U.S.C. 5307 or
5311.
Chief Executive Officer (CEO) means the principal executive in
charge of and responsible for the reporting agency.
Current edition of the National Transit Database Uniform Systems of
Accounts and the Reporting Manual means the most recently issued
edition of the reference documents.
Days mean calendar days.
Public Transportation Agency or transit agency means an agency
authorized to transport people by bus, rail, or other conveyance,
either publicly or privately owned, and which provides to the public
general or special service (but not including school, charter,
sightseeing service or intercity bus transportation or intercity rail
transportation provided by the entity described in 41 U.S.C. Chapter
243 (or a successor to that entity) on a regular and continuing,
scheduled or unscheduled basis. Transit agencies are classified
according to the mode of transit service operated. A multi-mode transit
agency operates two or more modes, which are defined in the current
editions of the National Transit Database Uniform System of Accounts
and the Reporting Manual.
Reference Document(s) means the current editions of the National
Transit Database Uniform System of Accounts and the Reporting Manual.
These documents are subject to periodic revision. Beneficiaries and
applicants are responsible for using the current editions of the
reference documents.
Reporting agency means the agency required to submit a report under
49 U.S.C. 5335.
Sec. 630.4 Requirements.
(a) National Transit Database Uniform System of Accounts. Each
applicant for and beneficiary of Federal financial assistance under 49
U.S.C. 5307 or 5311 must comply with the applicable requirements of 49
U.S.C. 5335, as set forth in the current edition of the ``National
Transit Database Uniform System of Accounts''; the ``Reporting
Manual''; Circulars; and other reference documentation.
(b) Reporting system. Each applicant for, and beneficiary of,
Federal financial assistance under 49 U.S.C. 5307 or 5311 must comply
with the applicable requirements of 49 U.S.C. 5335, as set forth in the
current edition of the ``National Transit Database Uniform System of
Accounts''; the ``Reporting Manual''; Circulars; and other reference
documentation.
(c) Copies. Copies of reference documents are available from the
National Transit Database Web site located at http://www.ntdprogram.gov.
These reference documents are subject to periodic
revision. Revisions of reference documents will be posted on the
National Transit Database Web site and a notice of any significant
changes in these reference documents will be published in the Federal
Register. On an annual basis, FTA will mail reporters a CD containing a
copy of the most recent version of the Reporting Manual along with
copies of other NTD data publications.
Sec. 630.5 Failure to report data.
Failure to report data in accordance with this part will result in
the reporting agency being ineligible to receive any section 5307 or
5311 grants directly or indirectly (e.g., a public agency receiving FTA
funds through another public agency rather than directly from FTA).
This ineligibility applies to all reporting agencies without regard to
the size of the urbanized area served by the reporting agency.
Sec. 630.6 Late and incomplete reports.
(a) Late reports. Each reporting agency shall ensure that its
report is received by FTA on due dates prescribed in the annual
Reporting Manual. A reporting agency may request an extension of 30
days after the due date. FTA will treat a failure to submit the
required report by the due date as failure to report data under Sec.
630.5.
(b) Incomplete reports. FTA will treat any report or submission
that does not contain all the necessary reporting forms, data, or
certifications for services directly operated by the reporting agency
in substantial conformance with the definitions, procedures, and format
requirements set out in the National Transit Database Uniform System of
Accounts and Reporting System as failure to report data under Sec.
630.5. FTA will treat the submission of a report with incomplete data
or missing forms for services provided under contract to the reporting
agency by private or public carriers as failure to report data under
Sec. 630.5 provided that the reporting agency has exhausted all
possibilities for obtaining this information.
Sec. 630.7 Failure to respond to questions.
FTA will review each section 5335 report to verify the
reasonableness of the data submitted. If any of the data do not appear
reasonable, FTA will notify the reporting agency of this fact and
request written justification to document the accuracy of the
questioned data. Failure of a reporting agency to make a good faith
written response to this request will be treated under Sec. 630.5 as
failure to report data.
Sec. 630.8 Questionable data items.
FTA may enter a zero or adjust any questionable data item(s) in a
reporting agency's section 5335 report used in computing the section
5307 or 5311 apportionment. These adjustments may be made if any data
appear inaccurate or have not been collected and reported in accordance
with FTA's definitions and/or confidence and precision levels, or if
there is lack of adequate documentation or a reliable recordkeeping
system.
Sec. 630.9 Notice of FTA action.
Before taking final action under Sec. Sec. 630.5, 630.6, 630.7, or
630.8, FTA will transmit a written request to the reporting agencies to
provide the necessary information within a specified reasonable period
of time. FTA will advise the reporting agency of its final decision in
this regard.
Sec. 630.10 Waiver of reporting requirements.
Waivers of one or more sections of the reporting requirements may
be granted at the discretion of the Administrator on a written showing
that the party seeking the waiver cannot furnish the required data
without unreasonable expense and inconvenience. Each waiver will be for
a specified period of time.
Sec. 630.11 Data adjustments.
Errors in the data used in making the apportionment may be
discovered after any particular year's apportionment is completed. If
so, FTA shall make adjustments to correct these errors in a subsequent
year's apportionment to the extent feasible.
Sec. 630.12 Display of OMB control numbers.
All of the information collection requests in this part have been
approved by the Office of Management and Budget under control number
2132-0008.
Appendix A to Part 630--Overview and Explanation of the FTA National
Transit Database Uniform System of Accounts and Reporting System
A. Introduction
Title 49 U.S.C. 5335 provides for establishment of two
information-gathering analytic systems: the National Transit
Database Uniform System of Accounts, and a Reporting System for the
collection and dissemination of public transportation financial and
operating data by uniform
[[Page 14065]]
categories. The purpose of these two systems is to provide
information on which to base public transportation planning and
public sector investment decisions. FTA administers the section 5335
Reporting System.
The National Transit Database Uniform System of Accounts
consists of:
Various categories of accounts and records for
classifying financial and operating data;
Precise definitions as to what data elements are to be
included in these categories; and
Definitions of practices for systematic collection and
recording of such information.
While a specific accounting system is recommended for
this recordkeeping, it is possible to make a translation from most
existing accounting systems to comply with the section 5335
Reporting System, which consists of forms and procedures:
For transmitting data from transit agencies to FTA;
For editing and storing the data; and
For FTA to report information to various groups.
Under the terms of section 5335, all applicants for, and
beneficiaries of, Federal assistance under sections 5307 or 5311
must comply with the Reporting System and the National Transit
Database Uniform System of Accounts to be eligible for Federal
grants. It should be noted that separate and complete section 5335
reports must be submitted by or for each purchased transportation
service provider that operates 100 or more revenue vehicles for the
purchased service during the maximum service period.
B. Purpose of This Appendix
This appendix presents a general introduction to the structure
and operation of the two Systems. It is not a detailed set of
instructions for completion of a section 5335 report or
establishment of a System of Accounts and Records. Persons in need
of more information should refer to the current editions of the
National Transit Database Uniform System of Accounts and the
Reporting Manual, available from the NTD Web site, http://www.ntdprogram.gov
under the section titled NTD Publications and
Reference Materials.
FTA periodically updates these reference documents or
supplements them to revise or clarify section 5335 definitions,
reporting forms, and instructions. Section 630.4 makes clear that
reporting agencies must use the most recent edition of reference
documents and reporting forms to comply with the section 5335
requirements. FTA therefore encourages local officials to check with
FTA before completing a section 5335 report to avoid unnecessary
efforts and delays.
C. Special (Reduced) Reporting Requirements
Certain information collection and recording requirements were
tailored to accommodate the unique characteristics of certain
transportation modes. Reduced requirements were permitted during
limited time periods to ease transition to complete reporting for
these modes. Reduced reporting requirements for commuter rail
systems and vanpool services ended in the 1987 report year. In
addition, the reduced reporting requirements for private
subscription and private noncontract conventional bus service is
eliminated for the 1992 report year. At the direction of Congress,
the NTD began to use new forms for reporting after 2001.
D. A Single Required Level of Section 5335 Reporting and Recordkeeping
FTA has developed a single required reporting format for use by
all transit agencies. The single required level accommodates
variations in size, local laws, and modes of transport.
The National Transit Database Uniform System of Accounts also
contains additional detailed financial and operational data that can
be submitted at the reporting agency's option. Because the optional
subcategories of data can be aggregated to the required level, these
subcategories define the more aggregated data. The definitions for
data reported at the required level are consistent with, and
summarized from, those for the more detailed optional data.
E. The National Transit Database Uniform System of Accounts
The National Transit Database Uniform System of Accounts
consists of a financial accounting and operational recordkeeping
system designed for public transportation managers and planners. Its
uniformity permits more thorough and accurate comparisons and
analyses of different transit agencies' operating costs and
efficiencies than if each had a unique recordkeeping and accounting
system. The National Transit Database Uniform System of Accounts
establishes various categories of accounts and records for
classifying public transportation operating and financial data, and
includes precise definitions of transportation terminology to ensure
that all users share a common understanding of how to use and
interpret the collected data.
(1) Use of the Accounts and Records System
Beneficiaries of, and applicants for, Federal assistance are not
required to use the National Transit Database Uniform System of
Accounts in keeping their own records. If an applicant or
beneficiary chooses not to use the National Transit Database Uniform
System of Accounts, however, it must nevertheless be able to
translate its accounts and records system to the accounts prescribed
in the National Transit Database Uniform System of Accounts. The
accounting system that the reporting agency uses must permit
preparation of financial and operating data that conform to the
National Transit Database Uniform System of Accounts directly from
its records at the end of the fiscal year, and must be consistent
with the following:
(i) The data must have been developed using the accrual method
of accounting. Those transit systems that use cash-basis accounting,
in whole or in part, must make work sheet adjustments in their
account books to record the data on the accrual basis.
(ii) Reporting agencies must follow or be able to directly
translate their system to the accounting treatment specified in the
publication ``National Transit Database Uniform System of
Accounts.''
(iii) The reporting agency's accounting categories (chart of
accounts) must be correctly related, using a clear audit trail, to
the accounting categories prescribed in the National Transit
Database Uniform System of Accounts.
(2) General Structure of the National Transit Database Uniform
System of Accounts
In the National Transit Database Uniform System of Accounts,
operating expenses incurred by the transit system are classified by
transit mode. FTA developed expense classifications in two
dimensions for uniformity and to enhance the usefulness of the data
collected under section 5335. The classifications are typical of
those of most transit accounting systems. The two dimensions are:
(i) The type of expenditure (expense object class); and
(ii) The function or activity performed.
Operating expenses can be identified either in function or
object class categories, or cross-classified, allowing
identification using both categories. The National Transit Database
Uniform System of Accounts also categorizes expenditures by four
basic functions submitted by all reporting agencies. A limited
number of additional details are optional. All reporting agencies
are required to use a single set of object class categories.
The National Transit Database Uniform System of Accounts has a
single set of revenue object classes to be used by all reporting
agencies, and provides a limited number of additional details that
are optional.
The National Transit Database Uniform System of Accounts
provides a classification for sources and uses of capital to be
submitted by all reporting agencies. These classifications replace
capital information previously required on the balance sheet and
capital subsidiary schedule.
The National Transit Database Uniform System of Accounts also
includes collecting and recording of certain operating data
elements.
Details and definitions of the expense object classes,
functions, revenue object classes, sources and uses of capital, and
operating data elements are contained in the current edition of the
``Reporting Manual,'' which FTA updates annually, and the National
Transit Database Uniform System of Accounts reference documents.
F. The Reporting System
(1) The section 5335 Reporting System consists of forms and
procedures for transmitting data from transit agencies to FTA. These
forms are available in the annual Reporting Manual on the NTD Web
site, http://www.ntdprogram.gov, under the section titled NTD
Publications and Reference Materials. All beneficiaries of Federal
financial assistance must submit the required forms and information
in order to allow FTA to: (1) Store and generate information on the
Nation's transportation systems; and (2) calculate apportionment
allocations for the section 5307 formula grant program (for
urbanized areas of 200,000 or more inhabitants), or the section 5311
formula grant program. Agencies submitting
[[Page 14066]]
section 5335 reports may only submit data for transit services that
they directly operate and purchase under contract from public
agencies and/or private carriers.
Separate and complete section 5335 reports must be submitted by
or for each purchased transportation service provider that operates
100 or more revenue vehicles for the purchased service during the
maximum service period. The reporting requirements include the
following major segments, which are based on information assembled
through the National Transit Database Uniform System of Accounts:
1. Capital report.
2. Revenue report.
3. Expense report.
4. Nonfinancial service and operating data reports.
5. Miscellaneous auxiliary questionnaires and subsidiary
schedules.
6. Vehicle Fleet Data.
7. Data Declarations.
(2) The section 5335 Reporting System includes two data
declarations.
(a) The Chief Executive Officer (CEO) Certification.
The CEO of each reporting agency is required to submit a
certification with each annual section 5335 report. The
certification must attest:
To the accuracy of all data contained in the section
5335 report;
That all data submitted in the section 5335 report are
in accord with section 5335 definitions;
If applicable, that the reporting agency's accounting
system used to derive all data submitted in the section 5335 report
is the system set forth in the National Transit Database Uniform
System of Accounts and that a section 5335 report using this system
was certified by an independent auditor in a previous report year;
If applicable, the fact that the reporting agency's
internal accounting system is other than the National Transit
Database Uniform System of Accounts, and that its: (i) Accounting
system uses the accrual basis of accounting, (ii) accounting system
is directly translated, using a clear audit trail, to the accounting
treatment and categories specified by the National Transit Database
Uniform System of Accounts, and (iii) accounting system and direct
translation to the National Transit Database Uniform System of
Accounts are the same as those certified by an independent auditor
in a previous reporting year; and
That a 100% count of trips and passenger mile data for
each mode/type of service meets FTA requirements.
(b) Auditor Statement on Section 5335 Financial Data Reporting
Forms and Section 5307 or Section 5311 Data.
Reporting agencies must submit with their section 5335 report a
statement signed by an independent public accountant or other
responsible independent entity such as a state audit agency. This
statement must express an opinion on whether the financial data
reporting forms in the section 5335 report present fairly, in all
material respects, the information required to be set forth therein
in accordance with the National Transit Database Uniform System of
Accounts. The statement shall also indicate whether any of the
reporting forms or data elements do not conform to the section 5335
requirements, and describe the discrepancies. The statement must
consider both required and optional data entries.
Each agency is required to file an Auditor Statement unless it
received a written waiver from FTA. The criteria in either Condition
I or Condition II for granting a financial data waiver are:
Condition I. The reporting agency (1) has adopted the National
Transit Database Uniform System of Accounts and (2) has previously
submitted a section 5335 report that was compiled using the National
Transit Database Uniform System of Accounts and was reviewed by an
independent auditor; or
Condition II. The reporting agency (1) uses an internal
accounting system other than the accounting system prescribed by the
National Transit Database Uniform System of Accounts, (2) uses the
accrual basis of accounting, (3) directly translates the system and
accounting categories, using a clear audit trail, to the accounting
treatment and categories specified by the National Transit Database
Uniform System of Accounts, and (4) has previously submitted a
section 5335 report that was compiled using the same internal
accounting system and translation to the National Transit Database
Uniform System of Accounts and was reviewed by an independent
auditor.
For agencies that have received a waiver, the CEO annual
Certification must verify that the financial data meet one of the
above two conditions.
Additionally, all reporting agencies that are in or serve
urbanized areas with populations of 200,000 or more and whose report
covers 100 or more vehicles in annual maximum service across all
modes and types of service must have an independent auditor review
all section 5335 data used in the section 5307 formula allocation.
The statement should discuss, by mode and type of service:
Directional route miles, vehicle revenue miles, passenger miles, and
operating cost, and include both directly operated and purchased
service. The independent, certified public accountant shall perform
the verification in accordance with the ``Statements on Standards
for Attestation Engagements'' issued by the American Institute of
Certified Public Accountants. The specific procedures to be reviewed
are described in the most recent Section 5335 Reporting Manual.
Issued in Washington, DC, this 20th day of March, 2007.
James S. Simpson,
Administrator.
[FR Doc. E7-5417 Filed 3-23-07; 8:45 am]
BILLING CODE 4910-57-P