2023 New York Laws › EDN - Education › Title 2 - School District Organization › Article 43 - School District Officers--Town and County Officials › Part 1 - General Provisions › 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.