Metropolitan Transportation Authority

New York Transit Museum: Selected Financial Management Practices of the Nostalgia Train Program

The Metropolitan Transportation Authority (MTA) operates the New York Transit Museum. The Museum is funded by private donations, public funding for cultural and educational activities, and Museum Store sales. In the Nostalgia Train Program, which is administered by the Museum with the support of an MTA affiliate (New York City Transit), vintage subway cars are periodically placed in operation as a single train, and members of the public may purchase tickets to ride on the train.

We identified significant weaknesses in the Museumís internal controls over ticket revenue for Nostalgia Train excursions. As a result of these weaknesses, there is no assurance that all ticket revenue owed to the Museum is collected and all collected revenue is deposited into the Museumís bank account. We also determined that most of the expenses incurred in the implementation of the Nostalgia Train Program are incurred by New York City Transit, and the expenses are financed by Transitís fare revenues and public funding for mass transit programs. Transit is not reimbursed from Nostalgia Train ticket sales or from the Museumís other funding sources. We recommend the MTA Board of Directors evaluate the appropriateness of this funding arrangement.

For a complete copy of Report 2006-S-19 click here.