N.Y. Public Authorities Law § 1279-f: Independent forensic audit

§ 1279-f. Independent forensic audit. 1. The authority shall contract

with a certified public accounting firm for the provision of an

independent, comprehensive, forensic audit of the authority. Such audit

shall be performed in accordance with generally accepted government

auditing standards. Such audit shall include, but is not limited to a

complete and thorough examination and detailed accounting of the

authority's capital elements, broken down by agency, including but not

limited to: rolling stock and omnibuses, passenger stations, track, line

equipment, line structures, signals and communications, power equipment,

emergency power equipment and substations, shops, yards, maintenance

facilities, depots and terminals, service vehicles, security systems,

electrification extensions, and unspecified, miscellaneous and

emergency.

The authority shall also contract with a financial advisory firm with

a national practice for the provisions of a review of: (a) any fraud,

waste, abuse, or conflicts or interest occurring within any department,

division, or office of the authority, its subsidiaries, affiliates, and

subsidiaries of affiliates; (b) any duplication of functions or duties

between the departments, divisions or office of the authority, its

subsidiaries, affiliates, and subsidiaries of affiliates; (c) options

for potential cost efficiencies and savings that could be achieved

through changes in internal controls and management reforms, functional

and process streamlining, internal procurement process reforms; (d) the

two thousand fifteen to two thousand nineteen capital plan for cost

overages and duplication; (e) the development of standardized

performance metrics for planning, design, approvals, change orders,

project management and delivery; and (f) cash flow and accounting of

expenditures of the authority, its subsidiaries, affiliates, and

subsidiaries of affiliates for the preceding three fiscal years.

2. Such audit shall be completed and submitted to the board no later

than January first, two thousand twenty and posted publicly on the

authority's website within thirty days of submission to the board. Such

reviews shall be completed and submitted to the board no later than July

thirty-first, two thousand nineteen and posted publicly on the

authority's website within thirty days of submission to the board.

3. The certified independent public accounting firm providing the

authority's independent, comprehensive, forensic audit shall adhere to

the requirements in paragraphs (a), (b) and (c) of this subdivision;

provided, however, the authority may contract with an accounting firm

notwithstanding paragraphs (a), (b) and (c) of this subdivision and

notwithstanding section twelve hundred seventy-six-c of this title upon

a written determination by the board of the authority which shall detail

that such accounting firm was awarded such contract on the basis that no

accounting firm meets the requirements set forth in paragraphs (a), (b)

and (c) of this subdivision.

(a) Such certified independent public accounting firm shall be

prohibited from providing audit services to the authority if the audit

partner having primary responsibility for the audit or the audit partner

responsible for reviewing the audit has performed audit services for the

authority in any of the five previous fiscal years of the authority.

(b) Such certified independent public accounting firm shall be

prohibited from performing any non-audit services to the authority

contemporaneously with the audit, including: (1) bookkeeping or other

services related to the accounting records or financial statements of

such authority; (2) financial information systems design and

implementation; (3) appraisal or valuation services, fairness opinions,

or contribution-in-kind reports; (4) actuarial services; (5) internal

audit outsourcing services; (6) management functions or human services;

(7) broker or dealer, investment advisor, or investment banking

services; and (8) legal services and expert services unrelated to the

audit.

(c) Such certified independent public accounting firm shall be

prohibited from providing audit services to the authority if an employee

assigned to the audit has performed audit services for the authority or

has been employed by the authority in any of the three previous fiscal

years of the authority.

4. Within one year of the effective date of this subdivision, the

authority shall publish a report detailing the steps it has taken to

implement the recommendations of the audit and the reviews, and provide

estimates of the recurring and non-recurring cost savings and

efficiencies that have been realized or are anticipated from

implementing such recommendations. The authority shall also review its

two thousand twenty to two thousand twenty-four capital plan for cost

overages and duplication and include its findings in the report. The

authority shall publish an additional updated report no later than July

first, two thousand twenty-five.

5. To the extent practicable, the findings and recommendations made

pursuant to this section and to section twelve hundred seventy-nine-g of

this title shall be incorporated into any twenty-year capital needs

assessment submitted prior to January first, two thousand twenty-five to

the metropolitan transportation authority capital program review board

pursuant to subdivision c of section twelve hundred sixty-nine-c of this

title.