[Federal Register Volume 72, Number 57 (Monday, March 26, 2007)]
[Proposed Rules]
[Pages 14061-14066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5417]


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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://
<a href="http://dms.dot.gov">dms.dot.gov</a>, 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:// <a href="http://dms.dot.gov">dms.dot.gov</a>.

FOR FURTHER INFORMATION CONTACT: For program issues, Nancy Ody, Office 
of Budget and Policy, (202) 366-0177 (telephone); (202) 366-7989 (fax); 
or <a href="/cdn-cgi/l/email-protection#8ae4ebe4e9f3a4e5eef3caeee5fea4ede5fc"><span class="__cf_email__" data-cfemail="f49a959a978dda9b908db4909b80da939b82">[email protected]</span></a> (e-mail). For legal issues, Shauna Coleman, Office 
of the Chief Counsel, (202) 366-4011 (telephone); (202) 366-3809 (fax); 
or <a href="/cdn-cgi/l/email-protection#bbc8d3daced5da95d8d4d7ded6dad5fbdfd4cf95dcd4cd"><span class="__cf_email__" data-cfemail="4a39222b3f242b642925262f272b240a2e253e642d253c">[email protected]</span></a> (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:
    <bullet> Various categories of accounts and records for 
classifying financial and operating data;
    <bullet> Precise definitions as to what data elements are to be 
included in these categories; and
    <bullet> Definitions of practices for systematic collection and 
recording of such information.
    <bullet> 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:
    <bullet> For transmitting data from transit agencies to FTA;
    <bullet> For editing and storing the data; and
    <bullet> 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:
    <bullet> To the accuracy of all data contained in the section 
5335 report;
    <bullet> That all data submitted in the section 5335 report are 
in accord with section 5335 definitions;
    <bullet> 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;
    <bullet> 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
    <bullet> 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


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