Requires the metropolitan commuter transportation authority to contract with a certified independent public accounting firm for the provision of an independent, comprehensive, forensic audit of the authority to examine redundancies, inefficiencies, and the authority's governance system.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6088
SPONSOR: Ra TITLE OF BILL:
An act to amend the public authorities law, in relation to requiring an
independent forensic audit of the metropolitan commuter transportation
authority; and providing for the repeal of such provisions upon expira-
tion thereof
PURPOSE OR GENERAL IDEA OF BILL:
Requires the metropolitan transportation authority to undertake an inde-
pendent forensic audit performed by a certified independent public
accounting firm and requires such accounting firm to develop a report
containing an analysis of redundancies and inefficiencies, suggestions
to reduce redundancies and inefficiencies, and recommendations for
alternative governance structures within the authority.
SUMMARY OF PROVISIONS:
Amends the public authorities law to require the metropolitan transpor-
tation authority to contract with a certified independent accounting
firm to perform a comprehensive, forensic audit. The certified independ-
ent accounting firm is prohibited from providing audit services if the
lead or coordinating audit partner has performed audit services for the
authority within the ten previous years. Such firm is prohibited from
performing any non-audit services for the authority while performing
such audit. Such firm is directed to Compile a report of its findings,
and such report is to include an analysis of redundancies and ineffi-
ciencies within the authority, suggestions and recommendations to reduce
redundancies and inefficiencies, and six governance action plan
proposals for alternative governance structures to be adopted by the
authority.
JUSTIFICATION:
The metropolitan transportation authority has experienced significant
delays and impediments'on its many projects. To reduce inefficiencies
and delays, the authority must be required to undergo an extensive inde-
pendent forensic audit to determine redundancies and other factors that
impact the delivery and implementation of the authority's services. For
example, as of 2024, the authority loses approximately $700 million
annually due to fare evasion alone. We have seen frequent abuses of
overtime, and the authority is struggling to balance its operating budg-
et and capital program. The governance structure of the authority should
be reexamined to assist in formulating solutions to such issues,
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Additional costs to the metropolitan transportation authority for
contracting with a certified independent public accounting firm to
perform forensic audit and analysis services.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed two years after such date.
STATE OF NEW YORK
________________________________________________________________________
6088
2025-2026 Regular Sessions
IN ASSEMBLY
February 26, 2025
___________
Introduced by M. of A. RA -- read once and referred to the Committee on
Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to requiring an
independent forensic audit of the metropolitan commuter transportation
authority; and providing for the repeal of such provisions upon expi-
ration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The public authorities law is amended by adding a new
2 section 1265-c to read as follows:
3 § 1265-c. Independent forensic audit. 1. Notwithstanding any other
4 provision of law, the authority shall contract with a certified inde-
5 pendent public accounting firm for the provision of an independent,
6 comprehensive, forensic audit of the authority. Such audit shall be
7 performed in accordance with generally accepted government auditing
8 standards. Such audit shall examine redundancies, inefficiencies, and
9 the authority's governance system.
10 2. The certified independent public accounting firm providing such
11 audit services pursuant to this section shall be prohibited from provid-
12 ing audit services if the lead or coordinating audit partner having
13 primary responsibility for the audit, or the audit partner responsible
14 for reviewing the audit, has performed audit services for the authority
15 within any of the ten previous fiscal years of the authority.
16 3. The certified independent public accounting firm providing such
17 audit services pursuant to this section shall be prohibited from
18 performing any non-audit services for the authority contemporaneously
19 with respect to such audit services.
20 4. It shall be prohibited for the certified independent public
21 accounting firm to perform for the authority any audit services if:
22 (a) the chief executive officer, comptroller, chief financial officer,
23 chief accounting officer or any other person serving in an equivalent
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05947-02-5
A. 6088 2
1 position in the authority was an employee, consultant or independent
2 contractor of such certified independent public accounting firm and/or
3 participated in any capacity in the audit of the authority at any time;
4 or
5 (b) the chief executive officer, comptroller, chief financial officer,
6 chief accounting officer or any other person serving in an equivalent
7 position with such certified independent public accounting firm was
8 employed as an executive level employee or an equivalent position with
9 the authority at any time.
10 5. The certified independent public accounting firm contracted to
11 perform the independent, comprehensive, forensic audit of the authority
12 pursuant to this section shall, within two years from the effective date
13 of this section, report its findings, conclusions and recommendations to
14 the governor, the state comptroller, the temporary president of the
15 senate, the speaker of the assembly, the chair and ranking minority
16 member of the senate finance committee, the chair and ranking minority
17 member of the assembly ways and means committee, the chairs and ranking
18 minority members of the senate and assembly corporations, authorities
19 and commissions committees, and the chairs and ranking minority members
20 of the senate and assembly transportation committees. Such report shall
21 include, but not be limited to, the certified independent public
22 accounting firm's analysis of redundancies and inefficiencies within the
23 authority, suggestions to reduce such redundancies and inefficiencies,
24 and recommendations for alternative governance structures within the
25 authority. Such report shall be made public and posted on the authori-
26 ty's website.
27 6. The certified independent public accounting firm shall develop no
28 more than six governance action plan proposals for alternative gover-
29 nance systems which shall be adopted by the authority. Such proposals
30 shall be developed congruently with, and included in, the independent
31 forensic audit report. Such proposals shall include suggestions and
32 recommendations for the implementation of alternate governance struc-
33 tures based upon the recommendations and suggestions included within
34 such report required pursuant to subdivision five of this section,
35 including, but not limited to, comprehensive cost savings and efficiency
36 improvement measures. The certified independent public accounting firm
37 shall develop the governance action plan proposals congruently with the
38 publication of the comprehensive forensic audit report, and the authori-
39 ty shall adopt and implement one or more of the governance action plan
40 proposals developed by the certified independent public accounting firm
41 within one year of the publication of the forensic audit report.
42 § 2. This act shall take effect immediately and shall expire and be
43 deemed repealed two years after such date.
