Follow-Up Audit of Sarasota County Area Transit (SCAT) Liberty Pass Program, December 2017

4 | A u d i t o f S C A T L i b e r t y P a s s P r o g r a m S e p t e m b e r 2 0 1 6 On March 30, 2016, SCAT management presented to the BCC a three-phase approach to discontinue the Liberty Pass. The BCC approved moving forward with the recommended changes, which are summarized below: Phase I - Effective October 1, 2016 Phase II - Effective October 1, 2017 Phase III - Effective October 1, 2018 Increase the Liberty Pass from $8.00 to $15.00 Increase the Liberty Pass from $15.00 to $20.00 Discontinue Liberty Pass, decrease cost of regular 30-day pass to $40.00, and expand eligibility for half-price fare to include persons with income of 150% of poverty level or less Also beginning October 1, 2016, determination of eligibility will no longer be performed by the third party agencies. All new Liberty Pass customers will be required to go to the SCAT Administration building and provide appropriate documentation for verification of eligibility. Once eligibility is verified, customers may purchase monthly passes from the third party agencies; however, annual re-qualification at the SCAT Administration building is required. Verification of eligibility is to continue after Phase III is implemented. Objectives, Scope and Methodology The objective of this audit was to determine if SCAT’s internal controls related to the distribution of Liberty Passes are operating effectively. The scope of the audit included the time period of October 1, 2015, through June 8, 2016. To meet the objective of the audit, the procedures performed included, but were not limited to, the following:  Conducted inquiries of management and staff of the SCAT Administration Department.  Obtained an understanding of the Liberty Pass program.  Reviewed the Participating Agency Enrollment Form (Enrollment Form) for 100% (nineteen) of third party agencies selling Liberty Passes.  Tested compliance by third party agencies with the eligibility requirements for Liberty Pass distribution.  Analyzed data to test for customers that were sold duplicate Liberty Passes.  Identified opportunities for improvement.