§ 1279-F — Independent forensic audit

§ 1279-f. Independent forensic audit. 1. The authority shall contract\nwith a certified public accounting firm for the provision of an\nindependent, comprehensive, forensic audit of the authority. Such audit\nshall be performed in accordance with generally accepted government\nauditing standards. Such audit shall include, but is not limited to a\ncomplete and thorough examination and detailed accounting of the\nauthority's capital elements, broken down by agency, including but not\nlimited to: rolling stock and omnibuses, passenger stations, track, line\nequipment, line structures, signals and communications, power equipment,\nemergency power equipment and substations, shops, yards, maintenance\nfacilities, depots and terminals, service vehicles, security systems,\nelectrification extensions, and unspecified, miscellaneous and\nemergency.\n The authority shall also contract with a financial advisory firm with\na national practice for the provisions of a review of: (a) any fraud,\nwaste, abuse, or conflicts or interest occurring within any department,\ndivision, or office of the authority, its subsidiaries, affiliates, and\nsubsidiaries of affiliates; (b) any duplication of functions or duties\nbetween the departments, divisions or office of the authority, its\nsubsidiaries, affiliates, and subsidiaries of affiliates; (c) options\nfor potential cost efficiencies and savings that could be achieved\nthrough changes in internal controls and management reforms, functional\nand process streamlining, internal procurement process reforms; (d) the\ntwo thousand fifteen to two thousand nineteen capital plan for cost\noverages and duplication; (e) the development of standardized\nperformance metrics for planning, design, approvals, change orders,\nproject management and delivery; and (f) cash flow and accounting of\nexpenditures of the authority, its subsidiaries, affiliates, and\nsubsidiaries of affiliates for the preceding three fiscal years.\n 2. Such audit shall be completed and submitted to the board no later\nthan January first, two thousand twenty and posted publicly on the\nauthority's website within thirty days of submission to the board. Such\nreviews shall be completed and submitted to the board no later than July\nthirty-first, two thousand nineteen and posted publicly on the\nauthority's website within thirty days of submission to the board.\n 3. The certified independent public accounting firm providing the\nauthority's independent, comprehensive, forensic audit shall adhere to\nthe requirements in paragraphs (a), (b) and (c) of this subdivision;\nprovided, however, the authority may contract with an accounting firm\nnotwithstanding paragraphs (a), (b) and (c) of this subdivision and\nnotwithstanding section twelve hundred seventy-six-c of this title upon\na written determination by the board of the authority which shall detail\nthat such accounting firm was awarded such contract on the basis that no\naccounting firm meets the requirements set forth in paragraphs (a), (b)\nand (c) of this subdivision.\n (a) Such certified independent public accounting firm shall be\nprohibited from providing audit services to the authority if the audit\npartner having primary responsibility for the audit or the audit partner\nresponsible for reviewing the audit has performed audit services for the\nauthority in any of the five previous fiscal years of the authority.\n (b) Such certified independent public accounting firm shall be\nprohibited from performing any non-audit services to the authority\ncontemporaneously with the audit, including: (1) bookkeeping or other\nservices related to the accounting records or financial statements of\nsuch authority; (2) financial information systems design and\nimplementation; (3) appraisal or valuation services, fairness opinions,\nor contribution-in-kind reports; (4) actuarial services; (5) internal\naudit outsourcing services; (6) management functions or human services;\n(7) broker or dealer, investment advisor, or investment banking\nservices; and (8) legal services and expert services unrelated to the\naudit.\n (c) Such certified independent public accounting firm shall be\nprohibited from providing audit services to the authority if an employee\nassigned to the audit has performed audit services for the authority or\nhas been employed by the authority in any of the three previous fiscal\nyears of the authority.\n 4. Within one year of the effective date of this subdivision, the\nauthority shall publish a report detailing the steps it has taken to\nimplement the recommendations of the audit and the reviews, and provide\nestimates of the recurring and non-recurring cost savings and\nefficiencies that have been realized or are anticipated from\nimplementing such recommendations. The authority shall also review its\ntwo thousand twenty to two thousand twenty-four capital plan for cost\noverages and duplication and include its findings in the report. The\nauthority shall publish an additional updated report no later than July\nfirst, two thousand twenty-five.\n 5. To the extent practicable, the findings and recommendations made\npursuant to this section and to section twelve hundred seventy-nine-g of\nthis title shall be incorporated into any twenty-year capital needs\nassessment submitted prior to January first, two thousand twenty-five to\nthe metropolitan transportation authority capital program review board\npursuant to subdivision c of section twelve hundred sixty-nine-c of this\ntitle.\n