Sarbanes Oxley In the Public Sector - A NYS Forum GTC-East Presentation

  • September 19, 2005
  • 1:30 - 4:00 p.m.
  • Meeting Room 6, The Governor Nelson A. Rockefeller Empire State Plaza Convention Center, Albany, NY 12242
  • Free of Charge

The Sarbanes-Oxley Act is among the most significant business-related events to hit the commercial market lately. Most provisions of the original Sarbanes-Oxley Act are only applicable to public companies and their auditors. However, government entities should become familiar with some of the key concepts, both because of the spirit of the act and also because of the value of understanding the impact on business customers of government. It will also be of value if the same or similar provisions eventually come to impact state and local government directly.


1:30 pm
Introduction - Susan Corbett-Zeronda, Esq., General Counsel and Deputy Director for Contracts and Procurement, New York State Office for Technology, Co-chair NYS Forum IT Procurement Committee
  • Purpose of the Program
  • Practical Impact for Public Sector
    • NOT Accounting Program
    • Discussion about Contracting Impact
1:45 pm
Overview of Federal Law - Constantine Karbaliotis, Executive Consultant, CGI

Statutory Overview

  • History: When law passed?
  • Who it applies to: Expressly vs. Indirectly
    • Reporting issuer in U.S. - foreign or domestic registrants - publicly traded issuer in U.S.
    • Non-reporting
  • Does not apply to: Government
  • High points of law:
    • accountability
    • penalties
    • controls
  • Why should we care?
    • Public confidence
    • Quality of Services
    • Accuracy of Accounting
2:15 pm
Public Sector Experience - Moderator: Paul Mason, Associate Attorney, New York State Department of Labor; Panelists: NYS Public Sector Members

Case Studies

  • DOL
    • UI Modernization Example
    • Vendor Responsibility
    • Contract Negotiations
      • Revenue Recognition
      • Limits of Liability
      • Warranty
  • Tax
    • Liquidated Damages
    • Revenue Recognition
  • OGS

2:35 pm


2:50 pm
Vendor Drivers - Moderator: Constantine Karbaliotis; Panelists: NYS Forum IT Corporate Roundtable Members
  • Internal Corporate Controls Processes

    How financial risk is assessed, how reserves calculated; which internal divisions have to review; how you insure; difference in assessment and how you respond if small vs. large company; revenue recognition issues, Sarbanes-Oxley.

  • Key Risk SARBOX Areas - Contracting Law, Terms & Conditions
    • Limits of Liability
    • Indemnification
    • Letters of Credit
    • Warranties (Tied to user satisfaction)
  • Litigation/Track Record vs. Internal Controls
    • Historical Basis for the Calculation
    • Loss Reserves are calculated on vendor standard language
  • Q&A response
3:20 pm
Panel - Point/Counter Point - Moderator: Susan Zeronda; Panelists: IT Corporate Roundtable Members & NYS Public Sector
  • Q&A Format
    • Advantages of Reporting Entity vs. Non-Reporting (Firms not subject to the reporting, firms subject to the reporting.)
      • Level of flexibility each has to agree to high risk terms.
  • FAS #70 - Outsourcing Non-Core Functions to Private Sector

    Outsourcing to companies means that government should obtain company's compliance with SARBOX.