New York State Thruway Authority

Debt Issuance Costs and Services

The New York State Thruway Authority issues bonds and notes to finance capital projects. The sale of such debt instruments requires various financial and legal services. We examined the practices used by the Authority in obtaining these services and in accounting for its debt issuance costs. We found that the Authority properly accounted for its debt issuance costs in the sample of debt we reviewed. However, we identified the need for certain improvements in the Authority’s practices for obtaining debt issuance services. For example, a few firms managed more of the Authority’s debt sales and earned a larger portion of the fees than other firms. Because the Authority did not document why firms were selected, there was less assurance the selection process was objective and services were obtained at the most reasonable costs available. We recommended the Authority document the reasons why firms were selected.

For a complete copy of Report 2004-S-36 click here.
For a copy of the associated follow-up report click here.