N.Y. Education Law § 2580: Funds; custody and disbursement

§ 2580. Funds; custody and disbursement. 1. Public moneys apportioned

to a city by the state and all funds raised or collected by the

authorities in a city for school purposes or to be used by the board of

education for any purpose authorized in this chapter, or any other funds

belonging to a city and received from any source whatsoever for similar

purposes, shall be paid into the treasury of such city and shall be

credited to the board of education. The funds so received into such

treasury shall be kept separate and distinct from any other funds

received into the said treasury. The officer having the charge thereof

shall give such additional security for the safe custody thereof as the

corporate authorities of such city shall require.

2. Such funds shall be disbursed by authority of the board of

education upon written orders drawn on the city treasurer or other

fiscal officer of the city. Such orders shall be signed by the

superintendent of schools and the secretary of the board of education or

such other officers as the board may authorize. If a claims auditor

shall have been appointed, orders shall be signed by the claims auditor;

provided, however, that the board may require, in addition, the

signature of such other officer or officers as it may by resolution

direct. Orders shall be numbered consecutively and shall specify the

purpose for which they are drawn and the person or corporation to whom

they are payable.

3. Fixed salaries, principal of and interest on indebtedness and

amounts becoming due upon lawful contracts for periods exceeding one

year may be disbursed without prior audit of the board of education. By

resolution duly adopted, the board may determine to enter into a

contract to provide for the deposit of the periodic payroll of the

school district in a bank or trust company for disbursal by it in

accordance with provisions of section ninety-six-b of the banking law.

4. It shall be unlawful for a city treasurer or other officer having

the custody of such city funds to permit their use for any purpose other

than that for which they are lawfully authorized; they shall be paid out

only on audit of the board of education or as otherwise provided herein.

Payments from such funds shall be made only by checks signed by the

treasurer or other custodian of such moneys and payable to the person or

persons entitled thereto and countersigned either by the comptroller, or

in a city having no comptroller, by an officer designated by the officer

or body having the general control of the financial affairs of such

city. The board of education of such city shall make, in addition to

such classification of its funds and accounts as it desires for its own

use and information, such further classification of the funds under its

management and control and of the disbursements thereof as the

comptroller of the city, or the officer or body having the general

control of the financial affairs of such city, shall require, and such

board shall furnish such data in relation to such funds and their

disbursements as the comptroller or such other financial officer or body

of the city shall require.