A long-awaited audit of the Memphis Area Transit Authority (MATA), ordered by Mayor Paul Young following the 2024 discovery of a $60 million budget shortfall, was released Monday, July 28.
The report details a range of questionable purchases — many made using the CEO’s American Express card — and flags a series of “elevated-risk transactions,” including a $9,600 payment to a consulting firm that helped then-interim CEO Bacarra Mauldin prepare for a job interview for the permanent role.
Mauldin was later fired in late March after returning to her previous position as deputy CEO. MATA is currently being managed by a team of auditors from the Tampa-based firm TransPro Consulting, whose eight-month term is set to expire next month.
PwC auditors reviewed records from 2018 through 2024, a period during which Gary Rosenfeld served as CEO before retiring in January of that year.
Big-ticket expenditures include catered suites at Memphis Grizzlies games and well-furnished downtown high-rise offices for MATA executives.
Shoddy bookkeeping and lax practices of former MATA leadership hampered the six-month effort, particularly the use of credit cards.
According to PwC’s ledger, MATA was unable to provide detailed receipts for 92 of 209 charges. Moreover, 142 of the charges failed to have a clear business context. Charges highlighted in the audit range from $92,277 for software, office equipment and mobile phones to $394 for a smart watch. MATA was unable to provide documentation for either. Company travel suffered a similar lack of oversight. Receipts were provided for only three out of 11 trips by leadership to various cities for a total of $56,000.
One of the most concerning findings was the absence of internal review. According to the audit, there were supposed to be monthly AMEX reviews, but an unnamed employee told auditors that such oversight was seldom, if ever, performed. Internal controls were described as virtually nonexistent, leaving MATA open to repeated financial mismanagement.
“The finance team does not receive receipts when reviewing finance expenses,” said the audit. PwC was unable to confirm whether the required reviews were actually happening.
The audit revealed a deeper issue: MATA had no formal budgeting process in place. PwC found that the agency’s spending was left largely unchecked, contributing to the $60 million budget shortfall and complicating the agency’s financial oversight. Without a structured budget, MATA’s financial management lacked the framework necessary to prioritize projects or control spending, creating the conditions for wasteful expenditures.
The report also highlights a lack of oversight on federal, state and local grant funding. MATA’s purchase of dozens of bus shelters — funded by grants — was flagged for improper tracking and storage. Despite purchasing 42 shelters in 2023, only one had been installed in two years. The report also reveals that 59 shelters remain in stock, and MATA could not demonstrate they were properly utilized or tracked.
“There are risks associated with receiving federal, state and local grant reimbursement for the purchase of items, such as these, that were not in use nearly two years later,” the report said.
The audit also uncovered a practice of “co-mingling” federal, state and local funds, which could jeopardize MATA’s compliance with grant funding rules and hinder transparent financial reporting.
The report concludes with several key recommendations, including embedding a culture of control and accountability, improving grant management practices, and strengthening financial oversight across MATA’s operations.
While the audit sheds light on MATA’s significant challenges, it also highlights the role of TransPro, the Tampa-based firm now overseeing operations. TransPro was initially hired to evaluate MATA’s inefficiencies, uncovering a number of systemic issues. Their findings included a high cost-per-trip rate, inefficiency in bus operations, and a lack of customer service focus. These evaluations helped prompt the removal of Mauldin and the broader management shakeup now underway.
In 2023, MATA’s service cuts and suspended trolley routes further compounded the issue, as riders faced delays and reduced bus availability. Despite this, executive spending continued to rise — including on Grizzlies suites and other luxury expenses — sparking community outrage.
The audit’s findings have drawn sharp criticism from local officials. Memphis City Council members, who had initially withheld funds for MATA’s operations until the audit’s release, expressed concern over the authority’s lack of accountability. They have pledged to delay further funding for fiscal year 2026 until improvements are made.
At MATA’s board meeting, MATA commissioner Ana McQuiston addressed the findings publicly. The MATA Board of Commissioners also issued a statement in response to the audit:
“The MATA Board of Commissioners acknowledges receipt of the Financial Lookback report prepared by PwC. We take the findings and recommendations in the report very seriously. As a public agency, MATA is committed to upholding transparency, accountability, and adherence to all established policies and procedures. We will conduct a thorough review of its contents and collaborate with the city of Memphis to assess any opportunities for strengthening internal control and improving financial oversight. Focus remains on serving the public responsibility and restoring trust through continuous improvements and responsible stewardship.”
Mayor Young, who ordered the audit, has emphasized the need for “fiscal discipline and service efficiency” at MATA. In a statement, he made it clear that the city could not continue supporting an agency without clear financial oversight and accountability.
“Rebuilding MATA’s financial structure is key not just for its survival, but for restoring public trust in the city’s transit system,” he said.
As the audit and its recommendations set the stage for reforms, the future of MATA depends on how quickly new leadership can act to address the deep-rooted problems uncovered by the investigation.
