N.Y. Education Law § 2116-a: Books and records to be kept by school districts

§ 2116-a. Books and records to be kept by school districts. Unless

otherwise prescribed by the state comptroller pursuant to section

thirty-six of the general municipal law:

1. All school districts shall be required to maintain books and

records in such form as the commissioner of education shall approve.

2. All school districts, except those employing fewer than eight

teachers, shall be required to use a double entry bookkeeping system

incorporating the fund method of accounting in accordance with a uniform

system of accounts approved by the commissioner of education and any

school district under the jurisdiction of a district superintendent may

at its option request the district superintendent to provide such

accounting service. The cost of accounting service so requested shall be

allocated by the district superintendent to and be paid by the school

district receiving such service.

3. (a) The school authorities of each school district, except those

employing fewer than eight teachers, but including the city school

districts of the cities of Buffalo and Rochester, shall obtain an annual

audit of its records by an independent certified public accountant or an

independent public accountant. The report of such annual audit shall be

presented to the trustees or board of education by such accountant. The

board of education of the city school district of the city of New York,

districts of such city shall obtain an annual audit by the comptroller

of the city of New York, or by an independent certified public

accountant or an independent public accountant. Such city school

district audit shall include, but not be limited to, transactions

processed at the level of the central administrative office, the

district, and the individual school. The community districts of such

city school district shall obtain an annual audit by the bureau of audit

of the board of education of the city school district of the city of New

York or by an independent certified public accountant or an independent

public accountant. A copy of the audit report in form prescribed by the

commissioner and certified by the accountant, or, in the city school

district of the city of New York or the community districts therein, by

the accountant, or the comptroller or bureau of audit, as the case may

be, shall be furnished to the commissioner on or before October

fifteenth following the end of the fiscal year audited, except that such

report shall be furnished to the commissioner on or before January first

following the end of the fiscal year audited for the city school

districts of the cities of Buffalo, Rochester, Syracuse, Yonkers, and

New York and for the community school districts of the city of New York.

(b) On or after July first, two thousand five, all school districts,

except the city school district of the city of New York, shall utilize a

competitive request for proposal process when contracting for such

annual audit. In addition, on or after July first, two thousand five,

and applicable to all school districts, no audit engagement shall be for

a term longer than five consecutive years; provided, however, that

nothing in this subdivision shall preclude a district, in its

discretion, from permitting an independent certified public accountant

or an independent public accountant engaged under an existing contract

for such services to (i) submit a proposal for such services in response

to a request for competitive proposals, or (ii) be awarded a contract to

provide such services under a request for proposal process. School

district procurement policies and procedures adopted pursuant to section

one hundred four-b of the general municipal law shall be amended, if

necessary, to be consistent with this requirement.

(c) Notwithstanding the provisions of subparagraph one of paragraph

(b) of subdivision four of section thirty-five of the general municipal

law, each school district shall (i) prepare a corrective action plan in

response to any findings contained in the annual external audit report

or management letter, or any final audit report issued by the state

comptroller, within ninety days of receipt of such report or letter, and

(ii) to the extent practicable, begin implementation of such corrective

action plan no later than the end of the next fiscal year.

3-a. In addition to the annual audit required by subdivision three of

this section, each school district and board of cooperative educational

services within the state shall be subject to audits of the state

conducted by the comptroller as set forth in section thirty-three of the

general municipal law.

3-b. Each school district shall in a timely fashion post on its

website, if any, the annual external audit report and the corrective

action plan prepared in response to any findings contained in the annual

external audit report or management letter, or any final audit report

issued by the state comptroller.

4. The school authorities of each school district may employ or

contract for the preparation of payrolls, accounts and records by

persons, firms or corporations using electronic computer systems.