Bill Text: NY S02502 | 2013-2014 | General Assembly | Amended

New York Senate Bill 2502 (Prior Session Legislation)

Bill Title: Makes internal audit functions optional by school districts unless an audit by the comptroller reveals deficiencies; provides that where deficiencies are found, school districts shall perform bi-annual internal audits until the comptroller conducts another audit of such school district.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Engrossed - Dead) 2014-03-20 - referred to education [S02502 Detail]

Download: New_York-2013-S02502-Amended.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        2502--B
                              2013-2014 Regular Sessions
                                   I N  S E N A T E
                                   January 18, 2013
                                      ___________
       Introduced  by  Sens.  RANZENHOFER, DeFRANCISCO, MARCHIONE -- read twice
         and ordered printed, and when printed to be committed to the Committee
         on Education -- reported favorably from  said  committee,  ordered  to
         first  report, amended on first report, ordered to a second report and
         ordered reprinted, retaining its place in the order of  second  report
         -- recommitted to the Committee on Education in accordance with Senate
         Rule  6,  sec.  8  --  committee  discharged,  bill  amended,  ordered
         reprinted as amended and recommitted to said committee
       AN ACT to amend the education law, in relation to making internal  audit
         functions  optional  by  school districts unless an audit by the comp-
         troller reveals deficiencies
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivisions 1, 2 and 7 of section 2116-b of the education
    2  law, subdivisions 1 and 7 as added by chapter 263 of the laws  of  2005,
    3  and subdivision 2 as amended by section 4 of part A of chapter 57 of the
    4  laws  of  2013,  are amended and a new subdivision 8 is added to read as
    5  follows:
    6    1. No later than July first, two thousand six,  each  school  district
    7  shall  establish  an internal audit function to be in operation no later
    8  than the following December thirty-first. Such function  shall  include:
    9  (a)  development  of a risk assessment of district operations, including
   10  but not limited to, a review of financial policies  and  procedures  and
   11  the  testing and evaluation of district internal controls; (b) [an annu-
   12  al] A review and update of such risk assessment; and (c) preparation  of
   13  reports[,  at least annually or more frequently as the trustees or board
   14  of education may direct,]  which  analyze  significant  risk  assessment
   15  findings,  recommend  changes  for  strengthening  controls and reducing
   16  identified risks, and specify  timeframes  for  implementation  of  such
   17  recommendations.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD05240-03-4
       S. 2502--B                          2
    1    2. School districts of less than eight teachers, school districts with
    2  actual general fund expenditures totaling less than five million dollars
    3  in  the previous school year, or school districts with actual enrollment
    4  of less than one thousand five hundred students in the  previous  school
    5  year shall be exempt from this requirement. Any school district claiming
    6  such  exemption  shall  [annually] certify to the commissioner that such
    7  school district meets the requirements set forth in this subdivision.
    8    7. Nothing in this section shall be construed as  requiring  a  school
    9  district  in any city with a population of one hundred twenty-five thou-
   10  sand or more to replace or modify an existing  internal  audit  function
   11  where  such  function already exists by special or local law, so long as
   12  the superintendent of the district [annually] certifies to  the  commis-
   13  sioner  that  the  existing internal audit function meets or exceeds the
   14  requirements of this section.
   15    8.  NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO  THE  CONTRARY,  THE
   16  INTERNAL  AUDIT  FUNCTION  ESTABLISHED PURSUANT TO THIS SECTION SHALL BE
   17  OPTIONAL BY ALL SCHOOL DISTRICTS UNLESS THE COMPTROLLER FINDS  DEFICIEN-
   18  CIES  IN  THE  AUDIT  PERFORMED  PURSUANT TO SECTION THIRTY-THREE OF THE
   19  GENERAL MUNICIPAL LAW. IF DEFICIENCIES ARE  FOUND  BY  THE  COMPTROLLER,
   20  SCHOOL  DISTRICTS SHALL PERFORM BIENNIAL INTERNAL AUDITS UNTIL THE COMP-
   21  TROLLER CONDUCTS ANOTHER AUDIT OF SUCH SCHOOL DISTRICT.
   22    S 2. This act shall take effect on the first of July  next  succeeding
   23  the date on which it shall have become a law.