27:25-5.24 Audits of the corporation.

6. a. The State Auditor shall conduct audits of the corporation, which shall:

(1) occur at least once every 72 months in a manner that is consistent with the Government Auditing Standards for audits utilized by the United States Government Accountability Office or its successor, the first of which shall be completed within 12 months of the effective date of P P.L.2018, c.162 (C.27:25-4.1 et al.);

(2) to the extent practicable, not duplicate the scope of work of the annual audit required to be made of the corporation's financial statements pursuant to subsection d. of section 20 of P.L.1979, c.150 (C.27:25-20); and

(3) focus on a specific area of the corporation's operations, as determined by the State Auditor.

b. (1) At least once every five years, the corporation shall hire an independent firm to: conduct a study on the financial management practices and budget reporting practices of mass transit agencies throughout the country; and prepare a report with findings regarding the best practices for financial management and budget reporting by mass transit agencies and a comparison of those best practices with the practices and policies of the corporation.

(2) The first such report shall be issued within 24 months of the effective date of P.L.2018, c.162 (C.27:25-4.1 et al.). Each report shall be submitted to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature.

(3) The corporation shall adopt any best practices included in the report within six months of the issuance of any report issued pursuant to subsection b. of this section. Upon the affirmative vote of seven members of the board of directors, the corporation may opt not to adopt individual policies or practices that are in line with the best practices of mass transit agencies throughout the country. If the corporation exercises this option, the corporation shall provide a detailed explanation of why adoption of that policy or practice is not in the best interest of the corporation.

L.2018, c.162, s.6.