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HD 6050

A communication from the Lowell Regional Transit Authority (see Section 8(g) of Chapter 161B of the General Laws) submitting their annual financial statements for fiscal year 2025

194th Legislature (2025-2026)

LRTA’s annual Uniform Guidance report shows no material weaknesses or noncompliance, and total federal expenditures for 2025 were $6,247,154 under major DOT programs.

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Bill Summary · HD 6050

Overview

This bill is a formal communication from the Lowell Regional Transit Authority (LRTA) to the state legislature, presenting its Uniform Guidance Annual Report for fiscal year 2025. It is filed as HD 6050 in the 194th Massachusetts General Court. The document is primarily an audit and financial reporting package required under federal Uniform Guidance, reflecting LRTA’s compliance, internal controls, and federal funding expenditures for the year ended June 30, 2025.

Main purpose and intent

  • To submit LRTA’s annual financial statements and accompanying audit reports as a component unit of the Massachusetts Department of Transportation.
  • To provide the Commonwealth with an official, independent assessment of LRTA’s compliance with federal grant requirements under Uniform Guidance for the year ended June 30, 2025.
  • To document internal control status, findings (if any), and a schedule of federal expenditures, aligning LRTA’s reporting with 2 CFR Part 200requirements.

Key provisions and contents

  • Independent Auditor’s Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance (Uniform Guidance)
    • States the auditor’s opinion that LRTA complied, in all material respects, with applicable requirements for major federal programs.
    • Describes audit scope, responsibilities, and the basis for opinion.
    • Notes about independence and risk considerations, and that the audit was conducted in accordance with GAAS and Uniform Guidance.
  • Internal control over compliance
    • Explains the concepts of material weaknesses, significant deficiencies, and noncompliance findings.
    • The report notes no material weaknesses or significant deficiencies in internal control over compliance were identified (per the Section II/III findings), with caveats about limitations of the audit.
  • Schedule of Findings and Questioned Costs
    • Section I indicates:
    • Type of auditor’s report on financial statements: Unqualified.
    • No material weaknesses identified in internal control over financial reporting.
    • No noncompliance material to financial statements identified.
    • For major federal programs, no material weaknesses or significant deficiencies identified.
    • Major program: Federal Transit Formula Grants (Assistance Listing 20.507).
    • Type A program threshold: $750,000.
    • LRTA qualified as a low-risk auditee.
    • No audit findings required to be reported under 2 CFR 200.156(a).
  • Schedule of Expenditures of Federal Awards (SEFA) for the year ended June 30, 2025
    • Details LRTA’s federal awards and expenditures, including:
    • U.S. Department of Transportation (DOT) programs:
      • Federal Transit Formula Grants (20.507): Expenditures totaled $6,247,154 (composed of Capital and CARES Act-related amounts across subcomponents listed in the schedule).
      • Subtotals include Capital components and CARES Act funding.
      • Bus and Bus Facilities Formula, Competitive, and Low or No Emissions Programs (20.526): Capital expenditures of $199,691.
      • Paul S. Sarbanes Transit in the Parks (20.52): Capital expenditures of $166,500.
    • Massachusetts DOT pass-through:
      • Enhanced Mobility of Seniors and Individuals with Disabilities (20.513) – two grants totaling $543,094.
    • Total Expenditures of Federal Awards: $6,247,154.
  • Note on basis of presentation and accounting policies
    • Schedule presents only federal activity and is not a full financial statement.
    • Expenditures are on an accrual basis and follow Uniform Guidance cost principles.
    • LRTA elected not to use the 10% de minimis indirect cost rate.

Who is affected

  • LRTA as the recipient and administrator of federal transit-related grants.
  • Massachusetts Department of Transportation (as LRTA’s parent/component unit) and state oversight entities reviewing LRTA’s compliance and financial management.
  • Federal program managers and the public, who rely on LRTA’s compliance with Uniform Guidance in the use of federal funds for transit services.

Procedural and timeline aspects

  • The report covers fiscal year 2025, ending June 30, 2025.
  • The auditor’s report date is March 25, 2026, indicating timing of the audit and subsequent filing.
  • LRTA is designated as a low-risk auditee for major federal programs (threshold $750,000 for Type A program classification).
  • The document includes standard auditor communications about responsibilities, testing procedures, and limitations, and notes no material findings requiring reporting.

Potential impact

  • Provides transparency on LRTA’s use of federal transit funds and compliance with federal requirements.
  • Supports continued eligibility for federal funding by demonstrating control environment and lack of material noncompliance findings.
  • Helps lawmakers and state officials assess LRTA’s financial stewardship and performance under federal programs.

Compiled from official sources — confirm details with the bill’s official record.

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