The audit covers the period from January 2009 to June 2011.
A state audit finds fault with Metro-North railroad workers who were supposed to monitor train conditions and crew performance.
It says that employees of the On-Board Services Unit were not on the job when they were scheduled to work - and performed poorly when they were.
The audit covers the period from January 2009 to June 2011. It was released Friday by Comptroller Thomas P. DiNapoli.
It also finds that a relative of a manager was "hired at an inflated salary over other more qualified employees." DiNapoli says that could be a violation of state law.
Metro-North says it cooperated with the review and has worked to make improvements.
The railroad says the MTA's inspector general will determine whether any more actions should be taken.