Directs the metropolitan transportation authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority.

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S2482-2013 Actions

• May 21, 2013: REPORTED AND COMMITTED TO FINANCE
• Jan 17, 2013: REFERRED TO TRANSPORTATION

S2482-2013 Meetings

Transportation: May 21, 2013

S2482-2013 Votes

S2482-2013 Memo

BILL NUMBER:S2482

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 the expiration thereof

PURPOSE:
Directs the Metropolitan Transportation Authority to contract with a
certified public accounting firm for the conducting of an independent
forensic audit.

SUMMARY OF PROVISIONS:

Section one amends the public authorities law by adding a new section
1265-c.

Section two is the effective date.

JUSTIFICATION:
This bill is necessary to give the legislature and the taxpayers of
New York the ability to know how and where money is being spent for
the operations of the Metropolitan Transportation Authority (MTA).
While the MTA has been cutting services, raising fares and tolls, it
has also been getting additional revenue from the MTA payroll tax.
This measure would require the MTA to conduct a full independent
forensic audit of the authority to bring accountability to the MTA.
This audit will give the legislature and the public the ability to
know where funds are being spent. It will also be a blueprint to
implement future cost saving measures within the MTA. This bill will
ensure that revenue is being spent wisely and will also reveal ways
that the MTA can cut costs without harming the public's
transportation needs. The independent forensic audit, conducted by a
public accounting firm, must report its findings of the audit on or
before January 1, 2016.

LEGISLATIVE HISTORY:
2012: S.4637 - Referred to Finance/A.4856 Referred to Corporations
2011: Passed Senate/Referred to Corporations

FISCAL IMPLICATIONS: None to the State.

EFFECTIVE DATE:
This act shall take effect immediately, and shall expire and be deemed
repealed January 2, 2016.

S2482-2013 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2482

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 17, 2013
                                 ___________

  Introduced  by  Sen.  LANZA  -- 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 the expiration thereof

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  The  public  authorities  law  is amended by adding a new
  section 1265-c to read as follows:

    S 1265-C. INDEPENDENT FORENSIC AUDIT.  1.  NOTWITHSTANDING  ANY  OTHER
  PROVISION  OF  LAW, THE AUTHORITY SHALL, WITHIN SIXTY DAYS OF THE EFFEC-
  TIVE DATE OF THIS SECTION AND AT ITS OWN EXPENSE, CONTRACT WITH A CERTI-
  FIED PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDEPENDENT, COMPRE-
  HENSIVE, 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 PROHIB-
  ITED FROM 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-AU-
  DIT 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

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD04030-01-3

 S. 2482                             2

  CHIEF  EXECUTIVE  OFFICER,  COMPTROLLER,  CHIEF FINANCIAL OFFICER, CHIEF
  ACCOUNTING OFFICER OR ANY OTHER PERSON SERVING IN AN EQUIVALENT POSITION
  IN THE AUTHORITY WAS AN EMPLOYEE, CONSULTANT OR  INDEPENDENT  CONTRACTOR
  OF 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 SIXTEEN, 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.
    S  2.  This act shall take effect immediately, and shall expire and be
  deemed repealed January 2, 2016.