S T A T E O F N E W Y O R K
2011-2012 Regular Sessions
I N S E N A T E
April 7, 2011
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when
printed to be committed to the Committee on Transportation -- commit-
tee discharged, bill amended, ordered reprinted as amended and recom-
mitted to said committee
AN ACT to amend the public authorities law, in relation to directing the
metropolitan transportation authority to contract for the provision of
an independent forensic audit of such authority; and providing for the
repeal of such provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 1265-c to read as follows:
S 1265-C. INDEPENDENT FORENSIC AUDIT. 1. THE AUTHORITY SHALL, WITHIN
SIXTY DAYS OF THE EFFECTIVE DATE OF THIS SECTION, CONTRACT WITH A CERTI-
FIED PUBLIC ACCOUNTING FIRM FOR THE PROVISION OF AN INDEPENDENT, COMPRE-
HENSIVE, FORENSIC AUDIT OF THE AUTHORITY. SUCH AUDIT SHALL BE PERFORMED
IN ACCORDANCE WITH GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.
SUCH AUDIT SHALL BE INDEPENDENT OF AND IN ADDITION TO THE INDEPENDENT
AUDIT OF THE AUTHORITY CONDUCTED PURSUANT TO SECTION TWENTY-EIGHT
HUNDRED TWO OF THIS CHAPTER.
2. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM PROVIDING THE
AUTHORITY'S INDEPENDENT, COMPREHENSIVE, FORENSIC AUDIT SHALL BE PROHIB-
ITED IN PROVIDING AUDIT SERVICES 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 THE AUTHORITY WITHIN ANY OF THE TEN PREVIOUS FISCAL YEARS
OF THE AUTHORITY.
3. THE CERTIFIED INDEPENDENT ACCOUNTING FIRM PERFORMING THE AUDIT
PURSUANT TO THIS SECTION SHALL BE PROHIBITED FROM PERFORMING ANY NON-AU-
DIT SERVICES FOR THE AUTHORITY CONTEMPORANEOUSLY WITH THE AUDIT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 4501--A 2
4. IT SHALL BE PROHIBITED FOR THE CERTIFIED INDEPENDENT PUBLIC
ACCOUNTING FIRM TO PERFORM FOR THE 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
IN THE AUTHORITY WAS EMPLOYED BY THAT CERTIFIED INDEPENDENT PUBLIC
ACCOUNTING FIRM AND PARTICIPATED IN ANY CAPACITY IN THE AUDIT OF THE
AUTHORITY AT ANY TIME IN THE PAST.
5. THE CERTIFIED INDEPENDENT PUBLIC ACCOUNTING FIRM CONTRACTED TO
PERFORM THE INDEPENDENT COMPREHENSIVE, FORENSIC AUDIT OF THE AUTHORITY
SHALL, ON OR BEFORE JANUARY FIRST, TWO THOUSAND THIRTEEN, REPORT ITS
FINDINGS, CONCLUSIONS AND RECOMMENDATIONS TO THE GOVERNOR, THE STATE
COMPTROLLER, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE CHAIR AND RANKING MINORITY MEMBER OF THE SENATE FINANCE
COMMITTEE, THE CHAIR AND RANKING MINORITY MEMBER OF THE ASSEMBLY WAYS
AND MEANS COMMITTEE, THE CHAIRS AND RANKING MINORITY MEMBERS OF THE
SENATE AND THE ASSEMBLY CORPORATIONS, AUTHORITIES AND COMMISSIONS
COMMITTEES, AND THE CHAIRS AND RANKING MINORITY MEMBERS OF THE SENATE
AND THE ASSEMBLY TRANSPORTATION COMMITTEES.
S 2. This act shall take effect immediately, and shall expire and be
deemed repealed January 2, 2013.