What's happening
This bill makes internal audit functions optional for school districts unless a comptroller's audit finds deficiencies.
Why it matters
Shifts oversight responsibility. By making internal audits optional unless deficiencies are found by the state comptroller, the bill places more reliance on external audits for identifying issues, potentially reducing the frequency of proactive, self-initiated checks by school districts.
Potential cost savings vs. risk. Districts may save money and administrative effort by not having to maintain regular internal audit functions, but this could also mean less frequent detection of financial mismanagement or inefficiencies unless flagged by state-level audits.
Reactive rather than preventive approach. Internal audits would only become mandatory if problems are already detected by a comptroller’s audit, meaning issues could go unnoticed for longer periods, possibly resulting in larger or more systemic problems before corrective action is required.
Could widen disparities. Larger or more complex districts may face greater risks without regular internal audits, while smaller districts already exempt from these requirements will see little change, potentially leading to uneven oversight and accountability across the state.
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Make School Audits Optional
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to education
- Referred to education
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Make School Audits Optional
In Senate Committee · Education · Sponsor Michael H. Ranzenhofer
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2365
2017-2018 Regular Sessions
IN ASSEMBLY
January 18, 2017
Introduced by M. of A. GALEF -- read once and referred to the Committee on Education
AN ACT to amend the education law, in relation to making internal audit functions optional by school districts unless an audit by the comptroller reveals deficiencies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1, 2 and 7 of section 2116-b of the education law, subdivisions 1 and 7 as added by chapter 263 of the laws of 2005, and subdivision 2 as amended by section 4 of part A of chapter 57 of the laws of 2013, are amended and a new subdivision 8 is added 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 annual] 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.
2. School districts of less than eight teachers, school districts with actual general fund expenditures totaling less than five million dollars in the previous school year, or school districts with actual enrollment of less than one thousand five hundred students in the previous school year shall be exempt from this requirement. Any school district claiming such exemption shall [annually] certify to the commissioner that such school district meets the requirements set forth in this subdivision.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02870-01-7
A. 2365 2
7. Nothing in this section shall be construed as requiring a school district in any city with a population of one hundred twenty-five thousand 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 commissioner that the existing internal audit function meets or exceeds the requirements of this section.
8. Notwithstanding any other provision of law to the contrary, the internal audit function established pursuant to this section shall be optional by all school districts unless the comptroller finds deficiencies in the audit performed pursuant to section thirty-three of the general municipal law. If deficiencies are found by the comptroller, school districts shall perform biennial internal audits until the comptroller conducts another audit of such school district.
§ 2. This act shall take effect on the first of July next succeeding the date on which it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.