We are pleased to submit this performance audit of the Department of Transportation, Public Transportation and Rail Divisions mandated by the 1998 General Assembly in Senate Bill 1366, Section 27.10. The objectives of the audit were to review: 1) relationships and interactions; (2) planning and policy making procedures; 3) progress on the implementation of Transit 2001 recommendations; 4) operations of the two divisions; 5) organization and staffing; and 6) compliance with applicable laws and regulations.