New York Racing Association
Cost Savings Actions (Follow-Up)
Issued: January 24, 2012
Link to full audit report 2011-F-16
Purpose
To determine the extent of implementation of the nine recommendations included in our prior audit reports: Financial Condition and Selected Governance Activities (2009-S-89) and First Interim Report on our Ongoing Audit of NYRA Operations (2010-S-54).
Background
Report 2009-S-89, issued July 12, 2010, determined that NYRA’s cash flow projections were supported and based on reasonable assumptions. However, we also concluded that NYRA had not done enough, or acted quickly enough, to reduce expenses in light of stagnant revenues and the uncertainties associated with its major revenue sources. In Report 2010-S-54, issued August 31, 2010, we reconfirmed the reasonableness of NYRA’s ongoing cash flow projections and noted that NYRA had developed plans to take certain actions that would result in reduced expenses and increased revenues. We also identified improvement opportunities for NYRA to enhance controls over its nongaming revenues. These two reports collectively made nine recommendations for NYRA to reduce and better monitor expenses, and to enhance and better control selected revenues.
Key Findings
- NYRA officials have made limited progress in implementing our recommendations. Of our nine recommendations, NYRA has not implemented four of them, and only partially implemented the remaining five.
Key Recommendations
- NYRA Officials have been given 30 days after the issuance of this follow-up report to provide information on any actions they have planned to address the unresolved issues discussed therein.
Other Related Audits/Reports of Interest
NYRA: Financial Condition and Operating Practices: First Interim Report (Report 2010-S-54)
NYRA: Financial Condition and Selected Governance Activities (Report 2009-S-89)
State Government Accountability Contact Information:
Audit Director: Frank Patone
Phone:(212) 417-5200; Email: StateGovernmentAccountability@osc.state.ny.us
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236
