Requires written responses to reports of examination by the office of the state comptroller, reports of external audits performed by independent public accountants or management letters prepared in conjunction with such external audits.
STATE OF NEW YORK
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3312
2011-2012 Regular Sessions
IN SENATE
February 16, 2011
___________
Introduced by Sen. GRISANTI -- read twice and ordered printed, and when
printed to be committed to the Committee on Local Government
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:
1 Section 1. Paragraph (a) of subdivision 2 of section 35 of the general
2 municipal law, as amended by chapter 692 of the laws of 1989, is amended
3 to read as follows:
4 (a) Within ten days after the filing of a report of examination
5 performed by the office of the state comptroller, a report of an
6 external audit performed by an independent public accountant or any
7 management letter prepared in conjunction with such an external audit
8 with the clerk of the municipal corporation, industrial development
9 agency, district, agency or activity, or with the secretary if there is
10 no clerk, he or she shall give public notice thereof in substantially
11 the following form: "Notice is hereby given that the fiscal affairs of
12 (name of municipal corporation, industrial development agency, district,
13 agency or activity) for the period beginning on............... and
14 ending on..............., have been examined by (the office of the state
15 comptroller or an independent public accountant), and that the (report
16 of examination performed by the office of the state comptroller or
17 report of, or management letter prepared in conjunction with, the
18 external audit by the independent public accountant) has been filed in
19 my office where it is available as a public record for inspection by all
20 interested persons. Pursuant to section thirty-five of the general
21 municipal law, the governing board of (name of municipal corporation,
22 district, agency or activity) [may, in its discretion,] is required to
23 prepare a written response to any findings, including any adverse opin-
24 ion on the fair presentation of financial statements, and any recommen-
25 dations in the (report of examination performed by the office of the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02878-01-1
S. 3312 2
1 state comptroller or the report of external audit or management letter
2 by the independent public accountant) and file [any] such response in my
3 office as a public record for inspection by all interested persons not
4 later than (last date on which response may be filed)."
5 § 2. Paragraph (b) of subdivision 4 of section 35 of the general
6 municipal law, as amended by chapter 692 of the laws of 1989, is amended
7 to read as follows:
8 (b) (1) Not later than ninety days after presentation to the governing
9 board of a report of examination performed by the office of the state
10 comptroller, or receipt by the governing board of any report of an
11 external audit performed by an independent public accountant or any
12 management letter in conjunction with such an audit, the governing board
13 [may, in its discretion,] shall provide to the comptroller, and file in
14 the office of the clerk, or with the secretary if there is no clerk, of
15 the municipal corporation, industrial development agency, district,
16 agency or activity, a written response to [the] any findings, including
17 any adverse opinion on the fair presentation of the financial state-
18 ments, and any recommendations[, if any,] in the report or letter. In
19 the case of municipal corporations, [industrial development agency,]
20 districts, agencies or activities subject to examination by the commis-
21 sioner of education, [any] the written response shall also be provided
22 to such commissioner. In the case of industrial development agencies,
23 the written response shall also be provided to the commissioner of the
24 department of economic development.
25 (2) [A] The written response prepared pursuant to subparagraph one of
26 this paragraph shall be in such form as may be prescribed by the comp-
27 troller and shall include, with respect to each finding or recommenda-
28 tion, a statement of the corrective actions taken or proposed to be
29 taken, or if corrective action is not taken or proposed, an explanation
30 of the reasons therefor. [Any such] The written response shall also
31 include a statement on the status of corrective actions taken on find-
32 ings or recommendations contained in any previous report of examination,
33 or report of an external audit, or any management letter prepared in
34 conjunction therewith, by an independent public accountant for which a
35 written response was required. All officers and employees of the munici-
36 pal corporation, industrial development agency, district, agency or
37 activity shall fully cooperate with the governing board in the prepara-
38 tion of the response by the governing board.
39 § 3. Paragraph (c) of subdivision 4 of section 35 of the general
40 municipal law is relettered paragraph (d) and a new paragraph (c) is
41 added to read as follows:
42 (c) If a written response is not provided as required by this section,
43 the comptroller may provide to the governing board of the municipal
44 corporation, industrial development agency, district, agency or activity
45 notification of the failure to provide a written response which shall be
46 made a part of and set forth in the official record of the proceedings
47 of the next meeting of the governing board. The comptroller, in accord-
48 ance with either section thirty-four of this article or section nine of
49 the state finance law, also may administer an oath to, and compel the
50 appearance and attendance of, any officer or employee of the municipal
51 corporation, industrial development agency, district, agency or activity
52 for the purpose of ascertaining the reasons for the failure to provide a
53 written response and the status of any corrective action taken or
54 proposed to be taken.
55 § 4. This act shall take effect on the first of January next succeed-
56 ing the date on which it shall have become a law and shall apply to
S. 3312 3
1 reports of examination, reports of external audits and management
2 letters filed, after the effective date, with the clerk or, if there is
3 no clerk, the secretary of the municipal corporation, industrial devel-
4 opment agency, district, agency or activity.
