Requires that an independent comprehensive, forensic audit be conducted upon the metropolitan transportation authority; provides that the results thereof shall be sent to the governor, the comptroller and legislative leaders.
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 OR GENERAL IDEA OF BILL: 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 SPECIFIC PROVISIONS: Section 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. The independent public accounting firm must report its findings on or before January first, two thousand thirteen.
JUSTIFICATION: The MTA has increased rates 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.
PRIOR LEGISLATIVE HISTORY: New Bill.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: Immediately, and shall expire and be deemed repealed January 2, 2013.
STATE OF NEW YORK ________________________________________________________________________ 4501--A 2011-2012 Regular Sessions IN SENATE April 7, 2011 ___________Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee 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 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. THE AUTHORITY SHALL, WITHIN SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, 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 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-AU- DIT SERVICES FOR THE AUTHORITY CONTEMPORANEOUSLY WITH THE AUDIT.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10719-02-1 S. 4501--A 2
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 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 THIRTEEN, 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, 2013.