Takata board adopts updated financial controls and asks FTA to release held federal draws

The Twin Cities Area Transportation Authority (Takata) Board voted March 31 to adopt revised financial-management procedures and related resolutions intended to address concerns raised by the Federal Transit Administration, and the board asked the FTA to release federal drawdowns it said are being held.

The board approved a set of procedural changes that remove obsolete job titles, reassign responsibilities among consultants and managers, and add segregation-of-duties language requested by FTA reviewers. The changes rename the internal unit as the “finance team,” specify invoice-approval steps, require submission of an accounts-payable list to the board, and assign backup roles to accounting consultants when managers are unavailable.

Board members said the measures aim to show Takata’s ability to meet federal internal-control standards. The draft cover letter to FTA included a request that the agency lift the ECHO drawdown restrictions and release roughly $440,000 described in the board’s materials; the transcript described the amount as “some 440 something thousand” and later listed a figure transcribed as $443,65 (format unclear in the record).

The board also approved a resolution designating signature authority in the format requested by FTA; staff explained that the executive director (interim or otherwise) and the board chair will be authorized to file FTA applications and execute grant documents under the federal statutes cited in the resolution. The text read that the authority to execute and file applications is tied to 49 U.S.C., Chapter 53, and associated federal requirements.

Other governance actions taken included approval of an organizational chart clarifying which operational functions VIA will operate (operations, maintenance, dispatch, bus operators) and which functions remain Takata responsibilities (accounting, legal, compliance, grants), acceptance of an updated opinion of counsel letter, and adoption of an updated financial-projections plan showing cash flow through Sept. 30. Staff said the projections show two months in deficit that would be eliminated if the held federal funds are released.

The motions carried by roll call without recorded opposition; the transcript records affirmative votes from the chair and trustees. The board also voted to cancel vehicle insurance with Obsidian and associated general liability coverage now covered under the VIA contract.

Why it matters: Takata is asking FTA to remove a hold on federal drawdowns and is documenting internal controls and signature authority changes that FTA requested. If FTA releases the funds staff identified, the board’s short-term cash shortfall in the updated projection would be resolved without further action.

What’s next: Staff said Takata will finalize attachments and sign the cover letter for submission to FTA. The board’s adopted procedures require ongoing monthly board review of accounts payable and formal roles for processing grants and ECHO drawdowns.

Provenance: The board discussion, approvals, and the draft cover letter to FTA are recorded in the meeting transcript beginning with the management procedures presentation and subsequent motions (topic introduced at SEG 701 and discussed through SEG 1096).