senate Bill S4486

Extends provisions for internal audits by school districts from annually to every five years

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 06 / Apr / 2011
    • REFERRED TO EDUCATION
  • 10 / May / 2011
    • 1ST REPORT CAL.567
  • 11 / May / 2011
    • 2ND REPORT CAL.
  • 16 / May / 2011
    • ADVANCED TO THIRD READING
  • 14 / Jun / 2011
    • PASSED SENATE
  • 14 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 14 / Jun / 2011
    • REFERRED TO EDUCATION
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO EDUCATION
  • 22 / May / 2012
    • 1ST REPORT CAL.863
  • 23 / May / 2012
    • 2ND REPORT CAL.
  • 30 / May / 2012
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2012
    • PASSED SENATE
  • 11 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 11 / Jun / 2012
    • REFERRED TO EDUCATION

Summary

Extends provisions for internal audits by school districts from annually to every five years.

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Bill Details

See Assembly Version of this Bill:
A8404
Versions:
S4486
Legislative Cycle:
2011-2012
Current Committee:
Assembly Education
Law Section:
Education Law
Laws Affected:
Amd ยง2116-b, Ed L

Sponsor Memo

BILL NUMBER:S4486

TITLE OF BILL:
An act
to amend the education law, in relation to extending provisions for
internal audits by school districts from annually to every five years

PURPOSE OR GENERAL IDEA OF BILL:
To reduce the duplicative and onerous
requirement of both internal and external annual audits.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 - amends subdivisions one
and seven of section 2116-b of the Education Law, as added by Chapter
263 of the Laws of 2005 to change the requirement mandated by this
section for school districts to perform internal audits annually to
require such audit every five years.

Section 2 - provides that this act shall become effective take effect
on the first day of July next succeeding the date on which it shall
have become law.

JUSTIFICATION:
School districts are required by Education Law 2116-a
to obtain annual external audits. The requirement that they also
perform an internal audit each year, essentially duplicating the same
efforts put into the external audit, is wasteful and represents an
unfunded mandate that puts yet one more financial burden on school
districts that are facing challenging reductions in state aid. In
addition to the annual external audits, school districts also must
deal with regular audits by the Comptroller. One district has
reported that within one twelve month span, they had to tear business
office workers away from their usual duties to work with auditors for
five separate audits - two internal audits, two external audits and
one Comptroller audit. It is critical that the state begin to reduce
wasteful and duplicative mandates on our schools to reduce costs, and
by extension, real property taxes on our residents and businesses.

PRIOR LEGISLATIVE HISTORY:
New bill.

FISCAL IMPLICATIONS:
Savings to school districts across the state.

EFFECTIVE DATE:
This act shall take effect on the first day of July
next succeeding the date on which it shall have become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4486

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              April 6, 2011
                               ___________

Introduced  by Sens. RANZENHOFER, BONACIC, DeFRANCISCO, JOHNSON, LARKIN,
  SEWARD -- read twice and ordered  printed,  and  when  printed  to  be
  committed to the Committee on Education

AN  ACT  to amend the education law, in relation to extending provisions
  for internal audits by school districts from annually  to  every  five
  years

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivisions 1 and 7 of section  2116-b  of  the  education
law, as added by chapter 263 of the laws of 2005, are amended to read as
follows:
  1.  No  later  than July first, two thousand six, each school district
shall establish an internal audit function to be in operation  no  later
than  the  following December thirty-first. Such function shall include:
(a) development of a risk assessment of district  operations,  including
but  not  limited  to, a review of financial policies and procedures and
the testing and evaluation of district internal controls; (b) [an  annu-
al]  A review and update of such risk assessment; and (c) preparation of
reports[, at least annually or more frequently as the trustees or  board
of  education  may  direct,]  which  analyze significant risk assessment
findings, recommend changes  for  strengthening  controls  and  reducing
identified  risks,  and  specify  timeframes  for implementation of such
recommendations.  AUDITS PERFORMED PURSUANT TO  THIS  SECTION  SHALL  BE
COMPLETED EVERY FIVE YEARS.
  7.  Nothing  in  this section shall be construed as requiring a school
district in any city with a population of one hundred twenty-five  thou-
sand  or  more  to replace or modify an existing internal audit function
where such function already exists by special or local law, so  long  as
the  superintendent  of the district [annually] certifies to the commis-
sioner that the existing internal audit function meets  or  exceeds  the
requirements  of  this  section;  PROVIDED, HOWEVER, NOTWITHSTANDING ANY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10573-01-1

S. 4486                             2

SPECIAL OR LOCAL LAW TO THE CONTRARY,  SCHOOL  DISTRICTS  SHALL  PERFORM
SUCH INTERNAL AUDITS EVERY FIVE YEARS.
  S  2.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.

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