senate Bill S2501

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to education
Jan 18, 2013 referred to education

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S2501 - Bill Details

See Assembly Version of this Bill:
A4166
Current Committee:
Law Section:
Education Law
Laws Affected:
Amd ยง2116-b, Ed L
Versions Introduced in 2011-2012 Legislative Session:
S4486, A8404

S2501 - Bill Texts

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

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BILL NUMBER:S2501

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: 2011-12 - S.4486/A.8404 PASSED
SENATE/education

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.

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

                                  2501

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced by Sens. RANZENHOFER, BONACIC, DeFRANCISCO, 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.
                                                           LBD05164-01-3

S. 2501                             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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