What's happening
This bill requires the Metropolitan Transportation Authority to obtain an independent forensic audit and sets standards for auditor independence.
Why it matters
Mandates a deeper, more investigative review of MTA finances and operations. By requiring a "forensic" audit, the bill aims to uncover potential fraud, waste, abuse, or mismanagement that may not be apparent in standard financial audits, thus increasing transparency and accountability.
Sets strict independence standards for auditors. The bill prohibits audit firms with recent ties to the MTA (within the past 10 years) and bars firms from providing other services to the MTA while conducting the audit, reducing conflicts of interest and promoting truly impartial oversight.
Addresses the "revolving door" problem. It specifically bans firms from auditing the MTA if any of the MTA’s top financial officers were previously employed by that firm and worked on MTA audits, aiming to prevent undue influence or cozy relationships that might compromise the audit’s integrity.
Ensures public and legislative scrutiny of audit findings. The requirement to report findings to multiple state officials and legislative leaders means the results should not be hidden, potentially leading to public debate, policy changes, and reforms based on the audit’s conclusions.
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Who cares
Headline styles
Audit MTA With Outside Accountants
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to transportation
- Referred to transportation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1164
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sens. CARLUCCI, SERINO -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation
AN ACT to amend the public authorities law, in relation to directing the metropolitan transportation authority to contract for the provision of an independent forensic audit of such authority; and providing for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public authorities law is amended by adding a new section 1265-c to read as follows:
§ 1265-c. Independent forensic audit. 1. The authority shall, within sixty days of the effective date of this section, contract with a certified public accounting firm for the provision of an independent, comprehensive, forensic audit of the authority. Such audit shall be performed in accordance with generally accepted government auditing standards. Such audit shall be independent of and in addition to the independent audit of the authority conducted pursuant to section twenty-eight hundred two of this chapter.
2. The certified independent public accounting firm providing the authority's independent, comprehensive, forensic audit shall be prohibited in providing audit services if the lead (or coordinating) audit partner (having primary responsibility for the audit), or the audit partner responsible for reviewing the audit, has performed audit services for the authority within any of the ten previous fiscal years of the authority.
3. The certified independent accounting firm performing the audit pursuant to this section shall be prohibited from performing any non-audit services for the authority contemporaneously with the audit.
4. It shall be prohibited for the certified independent public accounting firm to perform for the authority any audit service if the chief executive officer, comptroller, chief financial officer, chief
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01818-01-7
S. 1164 2
accounting officer or any other person serving in an equivalent position in the authority was employed by that certified independent public accounting firm and participated in any capacity in the audit of the authority at any time in the past.
5. The certified independent public accounting firm contracted to perform the independent comprehensive, forensic audit of the authority shall, on or before January first, two thousand nineteen, report its findings, conclusions and recommendations to the governor, the state comptroller, the temporary president of the senate, the speaker of the assembly, the chair and ranking minority member of the senate finance committee, the chair and ranking minority member of the assembly ways and means committee, the chairs and ranking minority members of the senate and the assembly corporations, authorities and commissions committees, and the chairs and ranking minority members of the senate and the assembly transportation committees.
§ 2. This act shall take effect immediately, and shall expire and be deemed repealed January 2, 2019.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to directing the metropolitan transportation authority to contract for the provision of an independent forensic audit of such authority; and providing for the repeal of such provisions upon expiration thereof
Purpose
To have an independent forensic audit of the MTA. There is too much uncertainty regarding the MTA and regarding where taxpayer money is spent. This independent audit will help bring some accountability to the MTA.
Summary of provisions
Section 1. Adds a new section 1265-c to the public authorities law providing that the authority shall, within sixty days of the effective date of this section, contract with a certified public accounting firm for the provision of an independent, comprehensive, forensic audit of the authority. The independent public accounting firm must report its findings on or before January first, 2018.
Section 2. Effective date.
Justification
The MTA has increased fares and have received additional revenues through the MTA payroll tax. There needs to be some accountability to justify all of these taxes and fees that have been put on the counties that receive services from the MTA. An independent forensic audit will give the legislature an accurate report on where the money is being spent and where the MTA can find ways to save costs.
Legislative history
2015-16: S1404A - Transportation 2013-14: S1777-A - Transportation Committee 2011-12: S4501-A - Transportation Committee
Fiscal implications
None to state.
Effective date
This act shall take effect immediately, and shall expire and be deemed repealed January 2, 2019.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.