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I've read many claims that the Metropolitan Transit Authority of New York is low on funds and is in massive debt, but I've also heard several allegations of fraud, including claims of "keeping two sets of financial plans" to improperly justify fare hikes (I'm not asserting that they're necessarily true). As such, the truthfulness of the MTA's financial documents is in question. With these allegations in mind, are the MTA's financial documents accurate in their indication that the MTA is in debt and continuing to lose money?

Transport Alternatives "MTA Cooked Books, Hid $500 Million"

In double bombshell accusations, the New York State Comptroller and New York City Controller issued separate reports in April showing that the MTA kept two sets of books and hid $500 million over several years in order to justify the 50-cent city bus and subway fare increase.

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    Please add some links to the claims of debt. This link may also be useful to answerers: mta.info/mta/budget – jozzas Jul 9 '12 at 0:04
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    What do you mean by "in debt"? Every business has items on liability side of the balance sheet. Also, note that your link claims that there were two sets of forward financial plans, not "two sets of books" – EnergyNumbers Jul 9 '12 at 14:12
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    @EnergyNumbers I did not mean insolvent. I meant long-term liabilities such as loans that are not yet paid off. – bwDraco Jul 9 '12 at 14:20
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    @EnergyNumbers: Previous allegations of fraud have called into question the truthfulness of these financial documents. – bwDraco Jul 9 '12 at 14:32
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    It is worth noting that government agencies are not (in the US at least) required to follow the same accounting procedures that publicly traded companies are held to. So there is a chance that the MTA is using dodgy accounting techniques without being guilty of "fraud" in the legal sense of the word. – dmckee Jul 9 '12 at 18:13

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