Transit director warns of federal compliance gap; board to ask treasurer to serve temporarily as authorized FTA representative

Josephine County’s transit director told the board May 26 that the county currently lacks an independent, authorized representative in the Federal Transit Administration (FTA) echosystem after the finance director’s departure, and he warned that the gap could trigger audit findings.

“...we’re not compliant with our obligations to the Federal Transit Administration,” the transit director said, describing the separation‑of‑duties requirement: the person who submits reimbursement requests should not be the same person who signs off as the county’s official representative. The transit office typically submits reimbursement requests into the FTA system; the finance/treasury side then reviews and processes those requests. With the finance director position vacant, the director said, the county needs someone else to serve as the independent authorized representative so audits will not show a conflict of duty.

The director said the county typically has about $4 million in available grant funding across various FTA projects and that reimbursements happen frequently — sometimes immediately after an expense is incurred. He recommended asking the county treasurer to serve temporarily as the independent reviewer and authorized representative, noting that the treasurer’s office already receives the funds and would be familiar with verifying deposits and eligible expenses.

Commissioners agreed to ask the treasurer whether they would accept the temporary role; if the treasurer declines, a commissioner volunteered to serve. Staff said they will confirm with the treasurer and report back. No formal vote was taken.

What this means: If the treasurer accepts, it would restore a separation of duties between the staff submitting reimbursement requests and the official who certifies them for the FTA echosystem. The board indicated the arrangement would be temporary until a permanent finance director is hired.