The City of Memphis has unveiled the concerning findings of a completed financial audit of the Memphis Area Transit Authority (MATA). The audit uncovered a series of financial missteps including a nonexistent budgetary process, millions in unchecked spending at a downtown office, and alarming usage of the company’s American Express card without proper receipts. The city, having briefed council members on these findings earlier this month, publicly shared the audit's results this week. Action News 5 reported the audit questioned the justification of these expenses and noted the lack of receipt documentation for a significant amount of company card spending.
Financial controversies at MATA are not new, with a spike in credit card spending coinciding with revelations of a $60 million budget shortfall. Former CEO Gary Rosenfeld, who stepped down in early 2024, was succeeded by Deputy CEO Bacarra Mauldin, who has since been terminated. A forensic audit by PricewaterhouseCoopers—commissioned by Mayor Paul Young in response to the financial concerns—was not released to the public until WREG investigators highlighted the delay. The audit revealed missing invoice approvals, undocumented expenses involving grant funds, and spending on entertainment and non-essential items, according to a report by WREG.
One Commerce Square, MATA's downtown office space, is now a prominent symbol of the financial disarray within the organization. According to the audit, MATA occupies two floors with the 13th largely unoccupied, leading to questions around the necessity for such expanse. In contrast, an operational facility is nearing a state of disrepair, with pictures showing a building that is sagging and separating from the ground in some areas. The audit, relayed by The Commercial Appeal, highlights significant problems within the transit authority, including financial mismanagement and noncompliance with internal policies for tracking expenses and approving invoices.
In a statement obtained by The Commercial Appeal, MATA has responded to the public release of the audit report, stating, "We take the findings and recommendations presented very seriously. As a public agency, MATA remains committed to operating with transparency, accountability, and in alignment with all established policies and procedures." The institution recognizes the seriousness of the audit’s findings and has stated its commitment to reviewing and strengthening internal procedures. However, past issues such as vehicles purchased for trolley operations but repurposed following the suspension of service may put MATA at risk of federal funding clawbacks. The audit suggests that some expenditures may not have complied with grant requirements.
