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prepares an audit engagement letter. Although the imately $1.6 billion annually to New York State
scope of the audit will vary depending on the size through formula and discretionary program funding
of the subrecipient and the concerns of the Office of sources. Of this amount, the New York State DOT
Transit, the audit will generally include typically directly administers $33 million on behalf
of FTA for the following programs:
· a review of internal controls over revenue and
expenditures; · Formula Grants for Non-Urbanized Areas
· a review of financial statements; (Section 5311)
· a variance analysis on the general ledger · Transportation for Elderly Persons and Per-
accounts; sons with Disabilities (Section 5310)
· farebox revenue testing; · Job Access and Reverse Commute Program
· contract revenue testing; (Section 5316)
· expenditure testing; and · New Freedom Program (Section 5317)
· inventory records and procurement practices. · Metropolitan and Statewide Planning (Sec-
tions 5303 & 5304)
At the completion of the audit, the Office of Ex-
ternal Audits prepares a written report. The report The Bureau of Public Transportation is led by a
identifies areas of noncompliance and ineligible director of public transportation and is supported by
costs. The Office of External Audits presents the a staff of 20 full-time employees.
final report to the governing body of the audited
agency, after which the Office of Transit has the
Sources of Financial Audit Requirement
responsibility of following up with the agency to
ensure that the areas of concern are addressed. A The New York State DOT's Rules and Regula-
corrective action plan (CAP) is developed to assist tions, Part 975, Statewide Mass Transportation Oper
with tracking completion of outstanding items. ating Assistance Program contains the following
Before FY 2012, the Office of Transit had no information in Section 975.21, Audits:
dedicated auditor. Subrecipient audits typically
The Commissioner pursuant to Sections 18b
were limited to one or two site audits per fiscal year. and 14g of the Transportation Law, and any city
However, beginning in January 2011 an auditor was or county contracting for the provision of mass
dedicated to the Office of Transit and completed transportation services pursuant to section 119r
a total of 119 desk inspections and one site audit of the General Municipal Law has the power to
within that fiscal year. Transit audits budgeted for audit and examine the accounts, books, records,
FY 2012 target completion of 120 desk inspections documents and papers of any participating pub-
and five site audits. lic transportation system or person, firm, or
corporation. In the event the system, or person,
firm, or corporation refuses to comply with the
The New York State DOT audit provisions, all future operating assistance
The Governor of New York has designated the payments will be withheld to that system or
person, firm, or corporation, until the system,
New York State DOT as the agency responsible for
or person, or firm or corporation complies with
administering state and FTA public transportation the audit provisions. Furthermore, the Commis-
programs. The Bureau of Public Transportation sioner shall be provided, upon request with cop-
within the New York State DOT Division of Pol- ies of audits performed by or in satisfaction of
icy and Planning is responsible for administering requirements for other levels of government that
more than $4 billion in state operating assistance for directly related to the provision of governmental
approx imately 130 systems statewide, including the operating aid.10
New York Metropolitan Transportation Authority
(MTA). The New York State DOT also provides
$37 million in state capital assistance to downstate
suburban and upstate public transportation systems. 10State of New York, Rules and Regulations, Part 975, Statewide
Capital funding for the MTA is addressed through Mass Transportation Operating Assistance Program. Available at:
a separate capital program supported through local, https://www.nysdot.gov/divisions/policy-and-strategy/public-
state, and federal resources. FTA provides approx- trans-respository/stoarr.pdf (accessed December 19, 2011).
17
