Metro News Release

For immediate release: February 27, 2004

Metro Releases Audit Report on Penn Parking

A comprehensive audit report of parking operations and revenue collection from Metro-owned parking lots that are operated by Penn Parking was sent to Congress and made public today following widespread interest and requests for the internal report completed in May 2003. The report focuses on suspected revenue shortfalls in parking revenue collection and potential solutions. The Washington Metropolitan Area Transit Authority’s (Metro) internal audit reports are exempt from disclosure under its public access to records policy (PARP). The PARP’s exemptions track those found in the Freedom of Information Act and Metro interprets its own policy by reference to precedent involving FOIA. However, Metro managers, after redacting certain confidential portions of the 18-page report, decided to make the document public. Yesterday, top Metro managers held a thorough public discussion with the Authority’s Board of Directors about the theft of money from Metro parking facilities by employees of Penn Parking, a contractor to WMATA, which occurred in part due to lapses in WMATA management and oversight of this contract. "We are extremely concerned about these thefts, and the revenue this Authority has lost, particularly at a time when we are challenged by serious budget deficits," Metro CEO and General Manager Richard A. White said. "We want to stress that the estimates of the dollars lost as a result of this theft, which are contained in an internal audit we completed last year, are merely estimates and not actual documented losses." The report includes a calculation in which actual revenue shortages at four stations over the course of 48 days came to $29,738. The report speculates that if extrapolated annually and system-wide, Metro could possibly see a parking revenue shortfall of approximately $500,000 to $1 million. That estimate is consistent with information Metro received from the International Parking Institute about the relative exposure of theft in the parking cash-handling business. Metro officials initiated the audit immediately after an allegation was made to the General Manager’s "hotline" that was created for just this purpose, and the audit was completed last May. "Since that report was completed, we have taken aggressive measures to bring this problem under control," Mr. White explained yesterday. "We have installed improved counting equipment, increased the number of parking facilities that accept SmarTrip-only payment, reduced the number of cash-only lanes, and increased Transit Police surveillance. As a result of those actions, 33 Penn Parking employees were separated from their jobs at Metro parking facilities, we sought criminal prosecution against two of those employees, an internal Metro personnel action was taken, and parking facilities at 28 percent of our stations now have the improved counting equipment. That number will increase to 63 percent by the end of April. "Based on discussions yesterday with our Board, we will be taking additional steps to further tighten our parking contract enforcement and the regulation of our parking facilities," Mr. White said. "We have been asked by our Board to report back to them by March 11 to further review contract management, performance, and oversight issues associated with this contract." Metro is also investigating Penn Parking’s claim of prior notification on these issues and what subsequent actions were taken.

News release issued on February 27, 2004.