N.Y. Public Authorities Law Section 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 § 1276-C (Independent audit of authority)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 § 1269-C (Metropolitan transportation authority capital program review board)section twelve hundred sixty-nine-c of this title.

Source: Section 1279-F — Independent forensic audit, https://www.­nysenate.­gov/legislation/laws/PBA/1279-F (updated May 12, 2023; accessed Jun. 15, 2024).

1260
Short title
1261
Definitions
1262
Metropolitan commuter transportation district
1263
Metropolitan transportation authority
1264
Purposes of the authority
1264‑A
State of emergency
1265
General powers of the authority
1265‑A
Contracts
1265‑B
Metropolitan transportation authority small business mentoring program
1266
Special powers of the authority
1266‑A
Medical emergency services
1266‑B
Medical emergency services plan
1266‑C
Transit projects
1266‑D
Long Island rail road commuter’s council
1266‑E
Metro-North rail commuter council
1266‑F
Medical emergency services plan
1266‑G
Excess loss fund
1266‑H
Authority police force
1266‑I
The permanent citizens advisory committee
1266‑J
Metropolitan transportation authority pledge to customers
1266‑K
Expired fare transfer policy
1266‑L
Surveillance cameras
1266‑L*2
Light duty for employees
1266‑M
Information concerning services for human trafficking victims
1267
Acquisition and disposition of real property
1267‑A
Acquisition and disposition of real property by department of transportation
1267‑B
Transit facilities for transit construction fund
1268
Co-operation and assistance of other agencies
1268‑A
Promotion of qualified transportation fringes
1269
Notes, bonds and other obligations of the authority
1269‑A
Metropolitan transportation authority capital program review board
1269‑B
Capital program plans
1269‑C
Metropolitan transportation authority capital program review board
1269‑D
Submission of strategic operation plan
1269‑E
Financial and operational reports
1269‑F
Mission statement and measurement report
1269‑G
Requirements for certain authority contracts and related subcontracts
1270
Reserve funds and appropriations
1270‑A
Metropolitan transportation authority special assistance fund
1270‑B
Metropolitan transportation authority Dutchess, Orange and Rockland fund
1270‑C
Metropolitan transportation authority dedicated tax fund
1270‑D
Consolidated financings
1270‑E
Implementation of the Transportation Infrastructure Bond Act of 2000
1270‑F
Implementation of the rebuild and renew New York transportation bond act of two thousand five
1270‑G
Regulation of certain authority expenditures
1270‑H
Metropolitan transportation authority finance fund
1270‑I
New York city transportation assistance fund
1270‑J
Metropolitan transportation authority commercial gaming revenue fund
1271
Agreement of the state
1272
Right of state to require redemption of bonds
1273
Remedies of noteholders and bondholders
1274
Notes and bonds as legal investment
1275
Exemption from taxation
1276
Actions against the authority
1276‑A
Annual audit of authority
1276‑B
Authority budget and financial plan
1276‑C
Independent audit of authority
1276‑D
Independent audit by the legislature
1276‑E
Reporting
1276‑F
Metropolitan transportation authority transit performance metrics
1277
Station operation and maintenance
1277‑A
Transfer and receipt of surplus funds
1278
Title not affected if in part unconstitutional or ineffective
1279
Metropolitan transportation authority inspector general
1279‑A
Management advisory board
1279‑B
Transition--election to withdraw from the metropolitan commuter transportation district
1279‑C
The office of legislative and community input
1279‑D
Supplemental revenue reporting program
1279‑E
Assignment, transfer, sharing or consolidating powers, functions or activities
1279‑F
Independent forensic audit
1279‑G
Major construction review unit
1279‑H
Debarment
1279‑I
Open data reporting
1279‑L
Right to share employees

Accessed:
Jun. 15, 2024

Last modified:
May 12, 2023

§ 1279-F’s source at nysenate​.gov

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