Author: Noah Van Zandt

Noah Van Zandt is currently a Supervisor with FAZ Forensics. Noah works with cases pertaining to business valuations, fraud and forensic analysis, and claims for lost earnings.

NYSERDA Economic Benefits Agreed-Upon Procedures Report Preparation

Written by Noah Van Zandt on December 18, 2025. Posted in Case Snapshots.

FAZ Forensics was engaged as the independent CPA (as required by NYSERDA) to create an Agreed-Upon Procedures Report (AUPR) related to our review of a developer’s Economic Benefits Report. NYSERDA agreements often require developers to report spending associated with labor, in-state purchases, supply-chain investments, community commitments, and other economic impacts, and to have those claims independently verified.

As part of this engagement, FAZ Forensics conducted a detailed review of sampled project expenditures to determine whether they met the eligibility requirements set forth by NYSERDA. Our work included examining high-value invoices, selecting representative samples across key spend categories, and evaluating whether the supporting documentation provided by the developer, its affiliates, and its subcontractors was sufficient to substantiate the claimed economic benefits, as required under NYSERDA’s agreed-upon procedures.

These reviews often involve navigating multi-tier vendor structures, varying documentation practices, and specific state compliance requirements. FAZ Forensics collaborates with the developer and, when appropriate, NYSERDA to clarify expectations, resolve questions, and ensure that the AUPR is completed in a manner consistent with contractual obligations. Our work provides developers with a clear, independent set of findings that helps support their reporting and strengthens the transparency and reliability of their documentation.

Through this engagement, FAZ Forensics demonstrated its capability to provide independent CPA review, AUPR reporting, and economic benefit verification for large-scale renewable energy projects. While these requirements originate in NYSERDA contracts, our team has the expertise to conduct similar reviews nationwide for other projects that require independent verification of economic impact or compliance-based reporting.

Prevailing Wage and Local Spend Compliance Review

Written by Noah Van Zandt on October 1, 2025. Posted in Case Snapshots, Prevailing Wage Compliance.

FAZ was engaged to provide forensic consulting services on a multibillion-dollar renewable energy construction project in New York that was subject to strict prevailing wage requirements and state mandated reporting obligations. Our role focused on assisting the prime contractor and its subcontractors with prevailing wage compliance reviews and the preparation of local labor and material spend reports for submission to project stakeholders.

We worked closely with the contractor’s payroll and compliance teams to review certified payroll records against New York State prevailing wage determinations, confirm proper classification of workers, and evaluate documentation of local sourcing. Given the size and complexity of the project, with multiple tiers of subcontractors and vendors, ensuring accuracy and consistency across reporting was critical.

In instances where our review identified apparent underpayments or discrepancies, we facilitated communication between the contractors and New York State Department of Labor district offices. By proactively engaging with regulators, we helped achieve efficient and reasonable resolutions, minimizing disruption to the project while protecting workers’ rights and ensuring compliance.

Our efforts resulted in streamlined compliance processes, audit ready reporting, and strengthened relationships between the contractors, regulators, and project stakeholders. Through this engagement, FAZ demonstrated its expertise in navigating the complex intersection of prevailing wage law, large scale project management, and regulatory oversight.

Explaining Prevailing Wage Payroll Audits and Why You Should Care

Written by Noah Van Zandt on June 27, 2025. Posted in Forensic Accounting, Prevailing Wage Compliance.

In the construction industry, particularly on publicly funded projects, prevailing wage laws ensure that workers are paid according to regional standards. A prevailing wage payroll audit is a formal review conducted to verify that a contractor has complied with these wage requirements. These audits are more than just paperwork as they help protect workers, ensure contractors follow through on their obligations, and make sure public funds are being used the right way.

A prevailing wage payroll audit typically involves examining certified payroll reports, timesheets, job classifications, fringe benefit contributions, and supporting documentation. The goal is to determine whether the wages paid match what is required under federal, state, or local prevailing wage regulations. According to the U.S. Department of Labor, these standards are established through the Davis-Bacon and Related Acts, which apply to contractors and subcontractors performing on federally funded or assisted contracts over $2,000 for the construction, alteration, or repair of public buildings or public works.

When performed by a forensic accounting firm, these audits offer an additional layer of assurance. Independent verification from a licensed professional carries weight with public agencies, prime contractors, and labor unions. It also gives contractors peace of mind that they are meeting their obligations and protecting themselves from potential penalties. Moreover, prevailing wage audits conducted by forensic accounting firms can serve as a critical tool for contract compliance and defense during Department of Labor investigations.

FAZ Forensics has conducted several prevailing wage audits on behalf of contract owners to verify compliance with wage laws. In our reviews, we have been the primary communicators with contractors and typically perform randomized sampling procedures and detailed reconciliations to confirm whether reported wage rates meet or exceed required thresholds. We have also served as a liaison between contractors and the Department of Labor when questions or issues have arisen, helping to clarify documentation and resolve concerns efficiently.

Such proactive audits not only help contractors avoid costly penalties and reputational damage but also serve as a defensible record in the event of a government audit or litigation. Ensuring transparency and accuracy in certified payroll submissions strengthens credibility with regulators and positions contractors/contract owners as trustworthy stewards of public funds.

The Effect of Cannabis Company Tax Liabilities on an Income Approach Valuation

Written by Noah Van Zandt on May 19, 2023. Posted in Business Valuation, Business Valuations for Advisory.

The growing, sale, and use (medicinally and recreationally) of cannabis remains illegal at the federal level in the US. However, growing, selling, and using cannabis is legal in several US states. In terms of the taxation of cannabis companies on the federal level, the Internal Revenue Code Section 280E states:

“No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances which is prohibited by Federal law or the law of any State in which such trade or business is conducted.”

Since cannabis is classified as a controlled substance on the federal level, cannabis companies pay federal income tax based on their gross profit rather than their net income. This can have a significant impact on value when utilizing an income approach.

In valuation, the income approach utilizes either historical or forecasted financials to determine the cash flows, or dividend-paying capacity, a company will generate that can be utilized by an owner or investor. A larger tax liability decreases available cash flows for owners and investors.

Below is an example of how the tax liabilities of cannabis companies impact their value when utilizing the income approach. Our example includes two companies with identical income statements. Company A is a cannabis company, while Company B is a restaurant.

For Company A, the cannabis company, assume a 21% federal tax and a 7% state tax:

Federal tax liability is based on gross profit.
Total federal and state tax liability: $851,200.
Net cash flows after taxes: $148,800 ($1,000,000 – $851,200).

For Company B, the restaurant, with the same tax rates:

Federal tax liability is based on net income.
Total federal and state tax liability: $265,300.
Net cash flows after taxes: $734,700 ($1,000,000 – $265,300).

This means Company B has $585,900 more in cash flows available to owners or investors than Company A. If both companies have a capitalization multiple of 5, Company B would be valued almost $2,929,500 more than Company A.

As this example demonstrates, the tax liabilities of cannabis companies can have a substantial impact on their valuation under the income approach.

FAZ has conducted several valuation engagements related to cannabis companies, ranging from consulting on creating defendable forecasts to valuations for raising equity, selling shares, and gifting shares.

Forensic Investigation and Analysis Helps FAZ Client with Settlement

Written by Noah Van Zandt on November 16, 2022. Posted in Case Snapshots.

In this case, our client owned a chain of car dealerships. Our client was concerned that there was a kick-back scheme at one of their dealerships. Our client alleged that certain members of the dealership management team were accepting payments for having the dealership purchase vehicles from the wholesalers at a price above the market price.

To start, FAZ conducted extensive interviews with the dealership owners and dealership employees in order to gain a better understanding of the dealership’s operations. Through these interviews, it was uncovered that the dealership’s historical practice had been to send their own employees to auction houses to purchase used vehicles rather than buying vehicles from the wholesalers. However, certain dealership management had caused the dealership to begin purchasing vehicles from the wholesalers. Based on this finding, FAZ decided to investigate the purchases from the wholesalers further.

FAZ then conducted a forensic investigation to gather and analyze documents related to the dealership’s purchases of vehicles from the wholesalers. FAZ was able to obtain the dealership’s purchase orders, canceled checks, and general ledger detail to support the payments made by the dealership to the wholesalers. Additionally, FAZ was able to obtain sale documents from the auction houses which the wholesalers had originally purchased the same vehicles from. Using these documents, FAZ was able to analyze the amount the wholesaler had paid for a vehicle, and the amount the dealership had paid for that same vehicle to purchase it from the wholesaler. As our client had alleged, the dealership had been purchasing vehicles at a significant premium compared to the price the wholesalers had paid for the same vehicles.

In this case, FAZ’s forensic report and analysis was utilized to reach a settlement between the dealership owners and the wholesalers.

Profitability and Lifestyle Analysis Helps Client Win Favorable Settlement

Written by Noah Van Zandt on July 14, 2022. Posted in Case Snapshots.

Financial Business Charts, Graphs And Diagrams. 3D Illustration Render

In this case, our client had opened a restaurant with a Restaurateur who already owned and managed a successful restaurant in the area. After several years of being open, the restaurant co-owned by our client seemed to be a success, however, our client had not received any distributions of profits. Our client began to suspect that money was being misappropriated from the co-owned restaurant. We were hired to investigate.

We conducted a few different analyses, including profitability and cost of goods sold analysis of the new restaurant co-owned by our client and the other restaurant solely owned by the restaurateur. Since both restaurants offered similar types of food and beverages, it would be expected that both restaurant’s profitability percentages would be similar. However, we found that the restaurant owned by the Restaurateur was significantly more profitable than the co-owned restaurant. Additionally, we found that the restaurant owned by the Restaurateur became more profitable after the opening of the co-owned restaurant. This raised the concern that the co-owned restaurant’s funds were being used to pay for supplies of the Restaurateur’s other restaurant. We investigated this claim and found that both restaurants utilized the same suppliers. This, in addition to the fact that the restaurant solely owned by the Restaurateur became more profitable after the opening of the co-owned restaurant, supported the idea that funds from the co-owned restaurant were being used to purchase supplies for the restaurant solely owned by the Restaurateur.

In addition to the profitability analysis, we completed a lifestyle analysis of the Restaurateur to determine if the income reported on the Restaurateur’s tax return could support the expenses listed on their bank statements and credit cards. In conducting this analysis, we found that the Restaurateur spent an excessive amount of money on lavish vacations abroad. It was also found that the Restaurateur had historically spent a significant amount of money on gambling. Using various bank account statements, credit card statements, and gambling account histories, we were able to determine that the income reported on the Restaurateur’s tax return could not support their lifestyle.

This case was eventually brought to mediation. Our forensic report was an integral part of the mediation and in the end, our client won a favorable settlement.

Conclusion of Value vs. Calculation of Value: Which Service Offering is Right for Me?

Written by Noah Van Zandt on June 14, 2022. Posted in Business Valuation, Business Valuations for Advisory, Business Valuations for Litigation.

In business valuation, there are two levels of service offerings: a conclusion of value and a calculation of value. In this article, I will explain the differences between these two service offerings and hopefully help you better understand which is the best service offering for your needs.

Per the AICPA’s VS Section 100 Statements on Standards for Valuation Services (“SSVS”) a conclusion of value has been performed when:

“(1) the engagement calls for the valuation analyst to estimate the value of a subject interest and (2) the valuation analyst estimates the value and is free to apply the valuation approaches and methods he or she deems appropriate in the circumstances.”

In comparison, the SSVS states a calculation of value has been performed when:

“(1) the valuation analyst and the client agree on the valuation approaches and methods the valuation analyst will use and the extent of procedures the valuation analyst will perform in the process of calculating the value of a subject interest (these procedures will be more limited than those of a valuation engagement.) and (2) the valuation analyst calculates the value in compliance with the agreement”

Based on these definitions, the main difference between a conclusion of value and a calculation of value lies in the approaches and methods utilized by the valuation expert in determining value. In a conclusion of value engagement, the valuation expert uses their professional judgement in determining the methods and approaches to use in their analysis. However, all approaches and methods must be considered in the expert’s analysis. In a calculation of value engagement, the approaches and methods to be used by the valuation expert in determining value are agreed upon between the expert and the client prior to the start of the engagement. This difference signifies that a conclusion of value engagement is usually more intensive and costly than a calculation of value engagement.

So, which service offering is right for you? Well, this depends on your intended use of the valuation. If the valuation will be used for court or to attach to a gift or estate tax return being sent to the IRS, you will need a conclusion of value engagement. This is because a conclusion of value is more conclusive than a calculation of value engagement and thus, is necessary for use in court or to send to the IRS. However, there are several scenarios where a calculation of value engagement may be a better and less expensive option than a conclusion of value engagement. I have listed a few of these scenarios below:

Upper-level management or a business owner is looking to determine the value of their business for management strategy, growth planning, exit planning, or stock option plan introduction purposes
A buyer interested in acquiring a business that is looking for a value to negotiate a purchase price or help them better understand the valuation process
A shareholder buy-out that has been agreed between all parties that a conclusion of value is unnecessary
An attorney that needs consulting regarding a case or requires just a preliminary value to help them better strategize for their case and better serve their clients. As we will note below, this calculation of value could be upgraded to a conclusion of value if necessary

In addition to our conclusion of value service offerings at FAZ, we have developed a Strategic Business Valuation (“SBV”) that leads to a calculation of value and is designed to offer our clients the best value for your money for those that only require a calculation of value engagement. Another perk of the SBV is that it can be easily upgraded to a conclusion of value engagement if required without having to redo any of the work completed in the calculation of value engagement.

For those interested in additional information regarding FAZ’s valuation services please reach out to either Stephen Ferraro at 518-288-2136 or David Consigli at 508-330-4513.

Forensic Analysis Assists FAZ Client in Quantifying Damages From Alleged Breach of Contract

News & Resources

Author: Noah Van Zandt

NYSERDA Economic Benefits Agreed-Upon Procedures Report Preparation

Prevailing Wage and Local Spend Compliance Review

Explaining Prevailing Wage Payroll Audits and Why You Should Care

The Effect of Cannabis Company Tax Liabilities on an Income Approach Valuation

Forensic Investigation and Analysis Helps FAZ Client with Settlement

Profitability and Lifestyle Analysis Helps Client Win Favorable Settlement

Conclusion of Value vs. Calculation of Value: Which Service Offering is Right for Me?

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