Directs the metropolitan transportation authority to contract with a certified public accounting firm for the conducting of an independent forensic audit of such authority.
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, 2014.
LEGISLATIVE HISTORY: 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EFFECTIVE DATE: This act shall take effect immediately, and shall expire and be deemed repealed January 2, 2014.
STATE OF NEW YORK ________________________________________________________________________ 4637--A 2011-2012 Regular Sessions IN SENATE April 14, 2011 ___________Introduced by Sens. LANZA, BALL, CARLUCCI, KLEIN, SAVINO, VALESKY, ZELDIN -- read twice and ordered printed, and when printed to be committed to the Committee on Transportation -- recommitted to the Committee on Transportation in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted 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 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10866-02-1 S. 4637--A 2
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 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 FOURTEEN, 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, 2014.