New York Racing Association

Financial Condition and Operating Practices: First Interim Report

The New York Racing Association (NYRA) is a not-for-profit corporation franchised by New York State to conduct racing and pari-mutuel wagering at the State’s three major thoroughbred racetracks: Aqueduct Racetrack, Belmont Park and Saratoga Race Course. In November 2006, NYRA filed for bankruptcy, and in September 2008, the State and NYRA entered into a bankruptcy settlement agreement in which NYRA conveyed all ownership rights in its racetracks to the State, and the State provided NYRA with a financial assistance package and made certain future financial commitments on behalf of NYRA. In accordance with this agreement, in May 2010, the State approved a $25 million loan for NYRA, after its President warned that NYRA was in imminent danger of running out of cash.

In July 2010, we issued an audit report (2009-S-89) addressing NYRA’s financial condition and selected governance activities after the bankruptcy settlement agreement went into effect, but before the loan from the State was approved. After the loan was approved, we initiated an ongoing audit of NYRA’s financial condition and operating practices. In the first interim report for this audit, covering the period July 28, 2010 through August 23, 2010, we confirmed the reasonableness of NYRA’s ongoing cash flow projections and noted that NYRA officials were taking certain actions in an effort to reduce expenses and increase revenues. We also noted that improvements could be made in certain aspects of NYRA’s revenue accountability.

For a complete copy of Report 2010-S-54 click here.
For a copy of the associated follow-up report click here.