N.Y. Education Law § 2116-c: Audit committees

§ 2116-c. Audit committees. 1. Every school district, except those

employing fewer than eight teachers, shall establish by a resolution of

the trustees or board of education an audit committee to oversee and

report to the trustees or board on the annual audit of the district

records as required by section twenty-one hundred sixteen-a of this

article.

2. The audit committee shall be established no later than January

first, two thousand six as a committee of the trustees or board, as an

advisory committee, or as a committee of the whole. An advisory

committee may include, or be composed entirely of persons other than

trustees or members of the board if, in the opinion of the trustees or

board, such membership is advisable to provide accounting and auditing

expertise.

3. The audit committee shall consist of at least three members, who

shall serve without compensation. Committee members shall be reimbursed

for any actual and necessary expenditures incurred in relation to

attendance at meetings. Employees of the school district are prohibited

from serving on the audit committee. A member of an audit committee

shall be deemed a school district officer for the purposes of sections

thirty-eight hundred eleven through thirty-eight hundred thirteen of

this chapter, but shall not be required to be a resident of the school

district.

4. The role of an audit committee shall be advisory and any

recommendations it provides to the trustees or board under subdivisions

five and six of this section shall not substitute for any required

review and acceptance by the trustees or board of education. If required

by a regulation adopted by the commissioner, the annual audit report

prepared by an independent certified public accountant or an independent

public accountant shall not be deemed final until accepted by a

resolution adopted by the trustees or board of education.

5. It shall be the responsibility of the audit committee to:

(a) provide recommendations regarding the appointment of the external

auditor for the district;

(b) meet with the external auditor prior to commencement of the audit;

(c) review and discuss with the external auditor any risk assessment

of the district's fiscal operations developed as part of the auditor's

responsibilities under governmental auditing standards for a financial

statement audit and federal single audit standards if applicable;

(d) receive and review the draft annual audit report and accompanying

draft management letter and, working directly with the external auditor,

assist the trustees or board of education in interpreting such

documents;

(e) make a recommendation to the trustees or board of education on

accepting the annual audit report; and

(f) review every corrective action plan to be developed by a school

district as required by section twenty-one hundred sixteen-a of this

article and assist the trustees or board of education in the

implementation of such plan.

6. In addition, it shall be the responsibility of the audit committee

to assist in the oversight of the internal audit function required by

section twenty-one hundred sixteen-b of this article, including, but not

limited to, providing recommendations regarding the appointment of the

internal auditor for the school district, the review of significant

findings and recommendations of the internal auditor, monitoring of the

school district's implementation of such recommendations, and the

evaluation of the performance of the internal audit function.

7. Notwithstanding any provision of article seven of the public

officers law or any other law to the contrary, a school district audit

committee may conduct an executive session pursuant to section one

hundred five of the public officers law pertaining to any matter set

forth in paragraphs b, c, and d of subdivision five of this section. Any

trustee or member of the board of education who is not a member of such

audit committee may be allowed to attend an audit committee meeting if

authorized by a resolution of the trustees or board of education.

8. The commissioner is authorized to promulgate regulations with

respect to audit committees as is necessary for the proper performance

of their duties.

9. As long as the chancellor of a school district in a city having a

population of one million or more inhabitants shall annually certify to

the commissioner that such district has a process for review by an audit

committee of the district's annual audit that meets or exceeds the

requirements of this section, the provisions of this section shall not

apply to such school district.