Bill Text: NY S03312 | 2011-2012 | General Assembly | Introduced

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Bill Title: Requires written responses to reports of examination by the office of the state comptroller, reports of external audits performed by independent public accountants or management letters prepared in conjunction with such external audits.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2012-01-04 - REFERRED TO LOCAL GOVERNMENT [S03312 Detail]

Download: New_York-2011-S03312-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         3312
                              2011-2012 Regular Sessions
                                   I N  S E N A T E
                                   February 16, 2011
                                      ___________
       Introduced  by Sen. GRISANTI -- read twice and ordered printed, and when
         printed to be committed to the Committee on Local Government
       AN ACT to amend the general municipal law, in relation to the writing of
         responses to audit findings and recommendations
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Paragraph (a) of subdivision 2 of section 35 of the general
    2  municipal law, as amended by chapter 692 of the laws of 1989, is amended
    3  to read as follows:
    4    (a)  Within  ten  days  after  the  filing  of a report of examination
    5  performed by the office  of  the  state  comptroller,  a  report  of  an
    6  external  audit  performed  by  an  independent public accountant or any
    7  management letter prepared in conjunction with such  an  external  audit
    8  with  the  clerk  of  the  municipal corporation, industrial development
    9  agency, district, agency or activity, or with the secretary if there  is
   10  no  clerk,  he  OR SHE shall give public notice thereof in substantially
   11  the following form: "Notice is hereby given that the fiscal  affairs  of
   12  (name of municipal corporation, industrial development agency, district,
   13  agency  or  activity)  for  the  period  beginning on............... and
   14  ending on..............., have been examined by (the office of the state
   15  comptroller or an independent public accountant), and that  the  (report
   16  of  examination  performed  by  the  office  of the state comptroller or
   17  report of, or  management  letter  prepared  in  conjunction  with,  the
   18  external  audit  by the independent public accountant) has been filed in
   19  my office where it is available as a public record for inspection by all
   20  interested persons. Pursuant  to  section  thirty-five  of  the  general
   21  municipal  law,  the  governing board of (name of municipal corporation,
   22  district, agency or activity) [may, in its discretion,] IS  REQUIRED  TO
   23  prepare  a written response to ANY FINDINGS, INCLUDING ANY ADVERSE OPIN-
   24  ION ON THE FAIR PRESENTATION OF FINANCIAL STATEMENTS, AND ANY  RECOMMEN-
   25  DATIONS  IN  the  (report  of examination performed by the office of the
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD02878-01-1
       S. 3312                             2
    1  state comptroller or the report of external audit or  management  letter
    2  by THE independent public accountant) and file [any] such response in my
    3  office  as  a public record for inspection by all interested persons not
    4  later than (last date on which response may be filed)."
    5    S  2.  Paragraph  (b)  of  subdivision  4 of section 35 of the general
    6  municipal law, as amended by chapter 692 of the laws of 1989, is amended
    7  to read as follows:
    8    (b) (1) Not later than ninety days after presentation to the governing
    9  board of a report of examination performed by the office  of  the  state
   10  comptroller,  or  receipt  by  the  governing  board of any report of an
   11  external audit performed by an  independent  public  accountant  or  any
   12  management letter in conjunction with such an audit, the governing board
   13  [may,  in its discretion,] SHALL provide to the comptroller, and file in
   14  the office of the clerk, or with the secretary if there is no clerk,  of
   15  the  municipal  corporation,  industrial  development  agency, district,
   16  agency or activity, a written response to [the] ANY findings,  INCLUDING
   17  ANY  ADVERSE  OPINION  ON  THE FAIR PRESENTATION OF THE FINANCIAL STATE-
   18  MENTS, and ANY recommendations[, if any,] in the report  or  letter.  In
   19  the  case  of  municipal  corporations, [industrial development agency,]
   20  districts, agencies or activities subject to examination by the  commis-
   21  sioner  of  education, [any] THE written response shall also be provided
   22  to such commissioner.  IN THE CASE OF INDUSTRIAL  DEVELOPMENT  AGENCIES,
   23  THE  WRITTEN  RESPONSE SHALL ALSO BE PROVIDED TO THE COMMISSIONER OF THE
   24  DEPARTMENT OF ECONOMIC DEVELOPMENT.
   25    (2) [A] THE written response prepared pursuant to subparagraph one  of
   26  this  paragraph  shall be in such form as may be prescribed by the comp-
   27  troller and shall include, with respect to each finding  or  recommenda-
   28  tion,  a  statement  of  the  corrective actions taken or proposed to be
   29  taken, or if corrective action is not taken or proposed, an  explanation
   30  of  the  reasons  therefor.  [Any  such] THE written response shall also
   31  include a statement on the status of corrective actions taken  on  find-
   32  ings or recommendations contained in any previous report of examination,
   33  or  report  of  an  external audit, or any management letter prepared in
   34  conjunction therewith, by an independent public accountant for  which  a
   35  written response was required. All officers and employees of the munici-
   36  pal  corporation,  industrial  development  agency,  district, agency or
   37  activity shall fully cooperate with the governing board in the  prepara-
   38  tion of the response by the governing board.
   39    S  3.  Paragraph  (c)  of  subdivision  4 of section 35 of the general
   40  municipal law is relettered paragraph (d) and a  new  paragraph  (c)  is
   41  added to read as follows:
   42    (C) IF A WRITTEN RESPONSE IS NOT PROVIDED AS REQUIRED BY THIS SECTION,
   43  THE  COMPTROLLER  MAY  PROVIDE  TO  THE GOVERNING BOARD OF THE MUNICIPAL
   44  CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY, DISTRICT, AGENCY OR ACTIVITY
   45  NOTIFICATION OF THE FAILURE TO PROVIDE A WRITTEN RESPONSE WHICH SHALL BE
   46  MADE A PART OF AND SET FORTH IN THE OFFICIAL RECORD OF  THE  PROCEEDINGS
   47  OF  THE NEXT MEETING OF THE GOVERNING BOARD. THE COMPTROLLER, IN ACCORD-
   48  ANCE WITH EITHER SECTION THIRTY-FOUR OF THIS ARTICLE OR SECTION NINE  OF
   49  THE  STATE  FINANCE  LAW, ALSO MAY ADMINISTER AN OATH TO, AND COMPEL THE
   50  APPEARANCE AND ATTENDANCE OF, ANY OFFICER OR EMPLOYEE OF  THE  MUNICIPAL
   51  CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY, DISTRICT, AGENCY OR ACTIVITY
   52  FOR THE PURPOSE OF ASCERTAINING THE REASONS FOR THE FAILURE TO PROVIDE A
   53  WRITTEN  RESPONSE  AND  THE  STATUS  OF  ANY  CORRECTIVE ACTION TAKEN OR
   54  PROPOSED TO BE TAKEN.
   55    S 4. This act shall take effect on the first of January next  succeed-
   56  ing  the  date  on  which  it shall have become a law and shall apply to
       S. 3312                             3
    1  reports of  examination,  reports  of  external  audits  and  management
    2  letters  filed, after the effective date, with the clerk or, if there is
    3  no clerk, the secretary of the municipal corporation, industrial  devel-
    4  opment agency, district, agency or activity.