Administration of Act 51-Related Funds - 591-0410-21

Description of Agency

The Michigan Transportation Fund (MTF), established by Public Act 51 of 1951, as amended, is the depository for revenues from motor vehicle license fees, gasoline and diesel-fuel taxes, and income taxes. After various statutory deductions and distributions, the revenue is distributed to the State (39.1%), to counties (39.1%), and to cities and villages (21.8%). Approximately $3.2 billion and $3.0 billion was distributed from MTF in fiscal years 2019 and 2020, respectively.

The Michigan Department of Transportation (MDOT) is the primary administrator of Act 51 by calculating monthly distributions to State departments, counties (83), and cities and villages (531) and by reviewing financial reports and audits of counties, cities, and villages. Act 51 restricts the use of funds to transportation-related activities such as road preservation, road maintenance, road construction, and snow removal. MDOT allocates distribution amounts to counties, cities, and villages and monitors funds as required by Act 51.

MDOT uses the Act 51 Distribution and Reporting System (ADARS) to calculate monthly distributions to each of the 614 local units of government from allocated funds for the counties, cities, and villages from the Act 51 forumula and to calculate annual adjustments to allocations and distributions to the State and local units for snow removal costs, engineering expenditures, and mileage transfers.

Audit Objectives

  1. To assess the accuracy of MDOT’s allocation and distribution of Act 51-related funding.
  2. To assess the sufficiency of MDOT’s processes for monitoring and reporting on the use of Act 51-related funding.
  3. To assess the effectiveness of selected security and access controls over ADARS.


Estimated Release Date: December 2021

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