An Integrity Monitor is an independent third party retained by a government or quasi-government agency to protect public funds and minimize opportunities for fraud, waste and abuse on major capital construction projects or within other Federal or state funded programs. Private owners and developers utilize Integrity Monitors to protect private investments from financial loss, theft or mismanagement, and to assure compliance with legal and regulatory requirements. An integral part of an Integrity Monitor’s role is to ensure that all contractors, vendors, and other entities or individuals involved in a project or program are following established procedures, laws and regulations and are conducting themselves in accordance with the highest ethical standards.
An effective Integrity Monitorship program begins by examining a project or program for indicators of fraud, corruption, and other criminal conduct, and then developing a comprehensive fraud risk assessment and corruption prevention program designed to specifically address identified risks. Such a program also involves gaining an understanding of policies, procedures and controls in place to mitigate potential risks and making recommendations for improvement where controls are found to be ineffective or non-existent. Once the risks have been assessed and the control weaknesses have been identified and strengthened, the focus shifts to conducting ongoing reviews of compliance with the enhanced procedures as well as with the contracts and all governing laws and regulations. These ongoing monitoring procedures focus in the areas of highest potential risk, which constantly evolve during the course of a project or programs life-cycle.
Members of Yip Associates have several years of combined experience providing Integrity Monitoring services on behalf of numerous governmental and private entities including the Port Authority of New York and New Jersey, Empire State Development Corporation, Metropolitan Transportation Authority, New York City Department of Investigation, New York City Housing Authority, New Jersey Transit, the New York Yankees among several others. We have provided these services on many of the Northeast region’s largest and most complex mega-construction projects such as the World Trade Center Cleanup and Recovery project, the Deutsche Bank demolition, the World Trade Center Transportation Hub, the National September 11 Memorial & Museum, the Moynihan Station Redevelopment, Cortlandt Street Station, Fulton Street Transit Center, South Ferry Subway Terminal, East Side Access project, Croton Water Treatment Plant and the New York City Rapid Repairs Program.
Typical areas of focus of an Integrity Monitorship may include, but are not limited to:
- Policies and procedures reviews
- Internal controls and risk assessments
- Bidding and procurement procedures
- Subcontractor selection and vetting processes
- Billing and payment procedures
- Detailed audits of change orders, allowances and other “extra” work
- Drill-down audits of subcontractors and vendors
- Prevailing wage and benefits compliance reviews
- M/W/DBE program compliance reviews
- Insurance and bonding verification
- Grant drawdown and financial assistance program compliance reviews