2023 New York Laws › PBA - Public Authorities › Article 9 - General Provisions › Title 1 - Reports by Public Authorities › 2802 - Independent Audits and Audit Reports of Authorities.

§  2802. Independent audits and audit reports of authorities. 1. State
  authorities. Every state authority or commission heretofore or hereafter
  continued or created by this chapter or any other chapter of the laws of
  the state of New York shall submit to the governor, chairman and ranking
  minority member of the senate finance committee,  chairman  and  ranking
  minority member of the assembly ways and means committee, each chair and
  ranking  member  of  the senate and assembly committees on corporations,
  authorities and commissions, the state comptroller, and the  authorities
  budget   office,   together   with   the  report  described  in  section
  twenty-eight hundred of this title, a copy  of  the  annual  independent
  audit  report,  performed  by  a  certified  public  accounting  firm in
  accordance with generally accepted  auditing  standards  as  defined  in
  subdivision  eleven  of  section  two  of  the  state  finance  law, and
  management letter and any other external examination of  the  books  and
  accounts  of  such  authority  other  than  copies of the reports of any
  examinations made by the state comptroller.
2. Local authorities. For the local authority fiscal year ending on or
  after December thirty-first, two thousand seven and annually thereafter,
  every local authority heretofore or hereafter continued  or  created  by
  this  chapter  or any other chapter of the laws of the state of New York
  shall submit to the chief executive officer, the chief  fiscal  officer,
  the chairperson of the legislative body of the local government or local
  governments  and the authorities budget office, together with the report
  described in section twenty-eight hundred of this title, a copy  of  the
  annual  independent  audit  report,  performed  by  a  certified  public
  accounting firm in accordance with generally accepted auditing standards
  as defined in subdivision eleven of section two  of  the  state  finance
  law,  and  management  letter  and any other external examination of the
  books and accounts of such authority other than copies of the reports of
  any examinations made by the state comptroller.
3. Each certified independent public accounting firm that performs for
  any state or local authority any audit required by  this  chapter  shall
  timely report to the audit committee of such authority: (a) all critical
  accounting  policies  and  practices  to  be  used;  (b) all alternative
  treatments of financial information within generally accepted accounting
  principles that have been discussed with management  officials  of  such
  authority,  ramifications of the use of such alternative disclosures and
  treatments, and the treatment preferred  by  the  certified  independent
  public  accounting  firm;  and (c) other material written communications
  between  the  certified  independent  public  accounting  firm  and  the
  management  of  such authority, such as the management letter along with
  management's response or plan of corrective action, material corrections
  identified or schedule of unadjusted differences, where applicable.
4. Notwithstanding any other provision of law  to  the  contrary,  the
  certified  independent public accounting firm providing such authority's
  annual independent audit will be prohibited in providing audit  services
  to  the respective authority if the lead (or coordinating) audit partner
  (having primary responsibility for the  audit),  or  the  audit  partner
  responsible  for  reviewing  the audit, has performed audit services for
  that issuer in each of the five previous fiscal years of such authority.
5. The certified independent public accounting  firm  performing  such
  authority's  audit  shall  be  prohibited  from performing any non-audit
  services to such authority  contemporaneously  with  the  audit,  unless
  receiving  previous  written  approval by the audit committee including:
  (a) bookkeeping or other services related to the accounting  records  or
  financial  statements  of  such  authority;  (b)  financial  information
  systems design and implementation; (c) appraisal or valuation  services,
  fairness   opinions,  or  contribution-in-kind  reports;  (d)  actuarial

  services;  (e)  internal  audit  outsourcing  services;  (f)  management
  functions  or  human services; (g) broker or dealer, investment advisor,
  or investment banking  services;  and  (h)  legal  services  and  expert
  services unrelated to the audit.
6.  It  shall  be  prohibited  for  any  certified  independent public
  accounting firm to perform for such authority any audit service  if  the
  chief  executive  officer,  comptroller,  chief financial officer, chief
  accounting officer,  or  any  other  person  serving  in  an  equivalent
  position  for such authority, was employed by that certified independent
  public accounting firm and participated in any capacity in the audit  of
  such  authority  during  the  one  year period preceding the date of the
  initiation of the audit.
7. Notwithstanding any provision of law  to  the  contrary,  a  public
  authority  may  exempt  information  from  disclosure  or report, if the
  counsel of such authority deems that  such  information  is  covered  by
  subdivision two of section eighty-seven of the public officers law.