Press Release Article


PORT AUTHORITY ISSUES EXTERNAL AUDITOR SOLICITATION AS PART OF AGENCY-WIDE REVIEW

Date: Oct 14, 2011
Press Release Number: 123-2011

The Port Authority of New York and New Jersey is issuing a Selection Process solicitation for independent external audit services for 2012. The solicitation will provide for consideration of a broader spectrum of external auditors and demonstrates another action taken in response to the direction from Governors Chris Christie and Andrew Cuomo to conduct a comprehensive review of the Port Authority.

The Audit Committee of the Board will consider a variety of factors before making their final audit services selection, including experience and qualifications, management approach, technical approach and cost.

In a September 19 letter to both governors detailing the steps the Port Authority is taking to comply with their direction to study cost-effectiveness, Chairman David Samson listed this audit solicitation as one of several actions the agency will take as it works to transition away from a “business as usual approach” under his leadership and the direction of the governors.

”Our Governors have told us clearly they want a top to bottom review of the entire Port Authority including our Capital Plan and operational costs. Critical to that is an on-going process that seeks to choose from the broadest number of auditors. This renewed approach will bring a new level of transparency and thoroughness to the agency,” said Chairman Samson.

Today’s announcement follows the chairman’s September 30 naming of the members of the Special Committee of the Board of Commissioners established to conduct a full review of the Authority’s past and current governance, management and financial practices. The members named to the committee are Port Authority Vice Chairman Scott Rechler, Commissioners Jeffrey Lynford and William “Pat” Schuber, and Chairman Samson.

The scope of the review, as outlined in Chairman Samson’s September 19 letter, include:

  • A comprehensive analysis of the Authority’s 10-year capital plan, in an effort to reduce the size and cost of non-revenue producing projects, reprioritizing existing projects and establishing new priorities, and the most effective way to finance the same.
  • A thorough review of the Authority’s capital projects and spending over the past 10 years to determine the causes and full extent of, as well as potential remedies to address, cost escalation on the Authority’s projects, with a focus on the World Trade Center site.
  • An evaluation of potential alternative revenue and capital sources for the Authority to minimize the impact on New York and New Jersey residents and businesses.
  • A top-to-bottom management review of the Authority’s organizational structure and effectiveness, staffing levels, compensation and benefits and financial management, including accounting, audit, financing, consulting and other contractual practices and agreements, all done to further lower costs and increase efficiencies within the Authority.
  • Additionally, the Audit Committee of the Authority will conduct an external auditor solicitation for the year 2012.

Samson concluded, “This is no longer the same Port Authority. We are embarking on a complete and total review of this agency. This process is another critical step to ensure that all actions by this agency are transparent, open, and efficient.”

CONTACT: The Port Authority of New York and New Jersey

(212) 435-7777

The Port Authority of New York and New Jersey, which is self-sufficient and does not receive tax dollars from either state, operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; the Port Authority-Port Jersey Marine Terminal and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan.


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