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

                                   299

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by M. of A. SWEENEY, KAVANAGH -- Multi-Sponsored by -- M. of
  A. GALEF, HOOPER, JAFFEE, WEISENBERG -- read once and referred to  the
  Committee on Local Governments

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:

  Section 1. Paragraph (a) of subdivision 2 of section 35 of the general
municipal law, as amended by chapter 692 of the laws of 1989, is amended
to read as follows:
  (a) Within ten days after  the  filing  of  a  report  of  examination
performed  by  the  office  of  the  state  comptroller,  a report of an
external audit performed by an  independent  public  accountant  or  any
management  letter  prepared  in conjunction with such an external audit
with the clerk of  the  municipal  corporation,  industrial  development
agency,  district, agency or activity, or with the secretary if there is
no clerk, he OR SHE shall give public notice  thereof  in  substantially
the  following  form: "Notice is hereby given that the fiscal affairs of
(name of municipal corporation, industrial development agency, district,
agency or activity)  for  the  period  beginning  on...............  and
ending on..............., have been examined by (the office of the state
comptroller  or  an independent public accountant), and that the (report
of examination performed by the  office  of  the  state  comptroller  or
report  of,  or  management  letter  prepared  in  conjunction with, the
external audit by the independent public accountant) has been  filed  in
my office where it is available as a public record for inspection by all
interested  persons.  Pursuant  to  section  thirty-five  of the general
municipal law, the governing board of (name  of  municipal  corporation,
district,  agency  or activity) [may, in its discretion,] IS REQUIRED TO
prepare a written response to ANY FINDINGS, INCLUDING ANY ADVERSE  OPIN-

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

                                                           LBD04610-01-3

A. 299                              2

ION  ON THE FAIR PRESENTATION OF FINANCIAL STATEMENTS, AND ANY RECOMMEN-
DATIONS IN the (report of examination performed by  the  office  of  the
state  comptroller  or the report of external audit or management letter
by THE independent public accountant) and file [any] such response in my
office  as  a public record for inspection by all interested persons not
later than (last date on which response may be filed)."
  S 2. Paragraph (b) of subdivision 4  of  section  35  of  the  general
municipal law, as amended by chapter 692 of the laws of 1989, is amended
to read as follows:
  (b) (1) Not later than ninety days after presentation to the governing
board  of  a  report of examination performed by the office of the state
comptroller, or receipt by the governing  board  of  any  report  of  an
external  audit  performed  by  an  independent public accountant or any
management letter in conjunction with such an audit, the governing board
[may, in its discretion,] SHALL provide to the comptroller, and file  in
the  office of the clerk, or with the secretary if there is no clerk, of
the municipal  corporation,  industrial  development  agency,  district,
agency  or activity, a written response to [the] ANY findings, INCLUDING
ANY ADVERSE OPINION ON THE FAIR PRESENTATION  OF  THE  FINANCIAL  STATE-
MENTS,  and  ANY  recommendations[, if any,] in the report or letter. In
the case of municipal  corporations,  [industrial  development  agency,]
districts,  agencies or activities subject to examination by the commis-
sioner of education, [any] THE written response shall also  be  provided
to  such commissioner.   IN THE CASE OF INDUSTRIAL DEVELOPMENT AGENCIES,
THE WRITTEN RESPONSE SHALL ALSO BE PROVIDED TO THE COMMISSIONER  OF  THE
DEPARTMENT OF ECONOMIC DEVELOPMENT.
  (2)  [A] THE written response prepared pursuant to subparagraph one of
this paragraph shall be in such form as may be prescribed by  the  comp-
troller  and  shall include, with respect to each finding or recommenda-
tion, a statement of the corrective actions  taken  or  proposed  to  be
taken,  or if corrective action is not taken or proposed, an explanation
of the reasons therefor. [Any such]  THE  written  response  shall  also
include  a  statement on the status of corrective actions taken on find-
ings or recommendations contained in any previous report of examination,
or report of an external audit, or any  management  letter  prepared  in
conjunction  therewith,  by an independent public accountant for which a
written response was required. All officers and employees of the munici-
pal corporation, industrial  development  agency,  district,  agency  or
activity  shall fully cooperate with the governing board in the prepara-
tion of the response by the governing board.
  S 3. Paragraph (c) of subdivision 4  of  section  35  of  the  general
municipal  law  is  relettered  paragraph (d) and a new paragraph (c) is
added to read as follows:
  (C) IF A WRITTEN RESPONSE IS NOT PROVIDED AS REQUIRED BY THIS SECTION,
THE COMPTROLLER MAY PROVIDE TO THE  GOVERNING  BOARD  OF  THE  MUNICIPAL
CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY, DISTRICT, AGENCY OR ACTIVITY
NOTIFICATION OF THE FAILURE TO PROVIDE A WRITTEN RESPONSE WHICH SHALL BE
MADE  A  PART OF AND SET FORTH IN THE OFFICIAL RECORD OF THE PROCEEDINGS
OF THE NEXT MEETING OF THE GOVERNING BOARD. THE COMPTROLLER, IN  ACCORD-
ANCE  WITH EITHER SECTION THIRTY-FOUR OF THIS ARTICLE OR SECTION NINE OF
THE STATE FINANCE LAW, ALSO MAY ADMINISTER AN OATH TO,  AND  COMPEL  THE
APPEARANCE  AND  ATTENDANCE OF, ANY OFFICER OR EMPLOYEE OF THE MUNICIPAL
CORPORATION, INDUSTRIAL DEVELOPMENT AGENCY, DISTRICT, AGENCY OR ACTIVITY
FOR THE PURPOSE OF ASCERTAINING THE REASONS FOR THE FAILURE TO PROVIDE A
WRITTEN RESPONSE AND THE  STATUS  OF  ANY  CORRECTIVE  ACTION  TAKEN  OR
PROPOSED TO BE TAKEN.

A. 299                              3

  S  4. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a  law  and  shall  apply  to
reports  of  examination,  reports  of  external  audits  and management
letters filed, after the effective date, with the clerk or, if there  is
no  clerk, the secretary of the municipal corporation, industrial devel-
opment agency, district, agency or activity.