2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 11 - Metropolitan Commuter Transportation Authority › 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.