Relates to accountability of school districts; strengthens the claims audit function within each school district and ensure that such auditor reports directly to the members or trustees of a school district; requires a minimum of six hours of training for school board members elected or appointed for a term beginning on or after July 1, 2005 on their financial oversight, accountability and fiduciary responsibilities.
STATE OF NEW YORK
________________________________________________________________________
6082--B
R. R. 232
2005-2006 Regular Sessions
IN ASSEMBLY
March 4, 2005
___________
Introduced by M. of A. DiNAPOLI, SANDERS, SILVER, EDDINGTON, FIELDS,
WEISENBERG, LAVINE, CANESTRARI, DelMONTE, HOOPER -- Multi-Sponsored by
-- M. of A. ALFANO, BING, BOYLAND, BRADLEY, BRENNAN, CAHILL, L. DIAZ,
FARRELL, GALEF, GORDON, GOTTFRIED, GRANNIS, GREENE, HOYT, JACOBS,
JOHN, KOON, LAVELLE, LIFTON, MAGNARELLI, McDONOUGH, ORTIZ, PHEFFER,
RAMOS, P. RIVERA, SALADINO, SCARBOROUGH, SWEENEY, THIELE, TOKASZ,
TONKO, TOWNS, WRIGHT -- read once and referred to the Committee on
Education -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee -- reported and referred to
the Committee on Rules -- amended on the special order of third read-
ing, ordered reprinted as amended, retaining its place on the special
order of third reading
AN ACT to amend the education law, in relation to accountability of
school districts
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1604 of the education law is amended by adding a
2 new subdivision 35 to read as follows:
3 35. a. In their discretion, to adopt a resolution establishing the
4 office of claims auditor and appoint a claims auditor who shall hold his
5 or her position subject to the pleasure of such trustees. Such claims
6 auditor shall report directly to the trustees. No person shall be eligi-
7 ble for appointment to the office of claims auditor who shall also be:
8 (1) a trustee of the school district;
9 (2) the clerk or treasurer of the school district;
10 (3) the superintendent of schools or other official of the district
11 responsible for business management;
12 (4) the person designated as purchasing agent; or
13 (5) clerical or professional personnel directly involved in accounting
14 and purchasing functions of the school district.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09579-10-5
A. 6082--B 2
1 b. Such claims auditor shall not be required to be a resident of the
2 district, and the position of claims auditor shall be classified in the
3 exempt class of the civil service. The trustees, at any time after the
4 establishment of the office of claims auditor, may adopt a resolution
5 abolishing such office, whereupon such office shall be abolished. When
6 the office of claims auditor shall have been established and a claims
7 auditor shall have been appointed and shall have qualified, the powers
8 and duties of the trustees with respect to claims auditing, and allowing
9 or rejecting all accounts, charges, claims or demands against the school
10 district, shall devolve upon and thereafter be exercised by such claims
11 auditor during the continuance of such office. The trustees shall be
12 permitted to delegate the claims audit function by using (1) inter-muni-
13 cipal cooperative agreements, (2) shared services to the extent author-
14 ized by section nineteen hundred fifty of this title, or (3) independent
15 contractors, to fulfill this function.
16 § 2. Subdivision 20-a of section 1709 of the education law, as amended
17 by chapter 566 of the laws of 1968, is amended to read as follows:
18 20-a. a. In its discretion to adopt a resolution establishing the
19 office of claims auditor and appoint [an] a claims auditor who shall
20 hold his or her position subject to the pleasure of such board of educa-
21 tion. Such claims auditor shall report directly to the board of educa-
22 tion. No person shall be eligible for appointment to the office of
23 claims auditor who shall also be:
24 (1) a member of the board of education;
25 (2) the clerk or treasurer of the board of education;
26 (3) the superintendent of schools or other official of the district
27 responsible for business management;
28 (4) the person designated as purchasing agent; [and] or
29 (5) clerical or professional personnel directly involved in accounting
30 and purchasing functions of the school district.
31 b. Such claims auditor shall not be required to be a resident of the
32 district, and such position shall be classified in the exempt class of
33 the civil service. Such board of education, at any time after the estab-
34 lishment of the office of claims auditor, may adopt a resolution abol-
35 ishing such office, whereupon such office shall be abolished. When the
36 office of claims auditor shall have been established and [an] a claims
37 auditor shall have been appointed and shall have qualified, the powers
38 and duties of the board of education with respect to claims auditing,
39 allowing or rejecting all accounts, charges, claims or demands against
40 the school district shall devolve upon and thereafter be exercised by
41 such claims auditor, during the continuance of such office. A board
42 shall be permitted to delegate the claims audit function by using (1)
43 inter-municipal cooperative agreements, (2) shared services to the
44 extent authorized by section nineteen hundred fifty of this title, or
45 (3) independent contractors, to fulfill this function.
46 § 3. Paragraph e of subdivision 2 of section 1711 of the education
47 law, as amended by chapter 358 of the laws of 1978 and such subdivision
48 as renumbered by chapter 474 of the laws of 1996, is amended to read as
49 follows:
50 e. To have supervision and direction of associate, assistant and other
51 superintendents, directors, supervisors, principals, teachers, lectur-
52 ers, medical inspectors, nurses, claims auditors, attendance officers,
53 janitors and other persons employed in the management of the schools or
54 the other educational activities of the district authorized by this
55 chapter and under the direction and management of the board of educa-
56 tion; to transfer teachers from one school to another, or from one grade
A. 6082--B 3
1 of the course of study to another grade in such course, and to report
2 immediately such transfers to such board for its consideration and
3 actions; to report to such board violations of regulations and cases of
4 insubordination, and to suspend an associate, assistant or other super-
5 intendent, director, supervisor, expert, principal, teacher or other
6 employee until the next regular meeting of such board, when all facts
7 relating to the case shall be submitted to such board for its consider-
8 ation and action.
9 § 4. Paragraph k of subdivision 4 of section 1950 of the education
10 law, as amended by chapter 708 of the laws of 1992, is amended to read
11 as follows:
12 k. Designate a depositary within the territorial limits of any compo-
13 nent district for the deposit of money in the manner provided by section
14 ten of the general municipal law. The receipt, deposit, investment and
15 disbursement of moneys, and all procedures relating thereto, including,
16 but not limited to the requirements for signatures, the appointment of
17 [an] a claims auditor to approve claims for purchases, and the optional
18 use of claim forms, and the establishment of an internal audit function,
19 shall be subject to the laws relating to union free school districts.
20 § 5. The education law is amended by adding a new section 2102-a to
21 read as follows:
22 § 2102-a. Required training for school district officers. 1. Every
23 trustee or voting member of a board of education of a school district or
24 a board of cooperative educational services, elected or appointed for a
25 term beginning on or after July first, two thousand five, shall, within
26 the first year of his or her term, complete a minimum of six hours of
27 training on the financial oversight, accountability and fiduciary
28 responsibilities of a school board member. Upon demonstration of
29 compliance, no trustee or member of a board of education or a board of
30 cooperative educational services shall be required to repeat this train-
31 ing requirement. Nothing in this section shall be deemed to require a
32 member of a central high school district board or a member of a board of
33 cooperative educational services to complete such requirement if such
34 member has already completed such requirement as a member of a board of
35 a component school district.
36 2. The curriculum used for training on financial oversight, account-
37 ability and fiduciary responsibilities shall be approved by the commis-
38 sioner in consultation with the comptroller. This curriculum may be
39 offered as part of a general course of training for the purpose of
40 educating trustees or members on their powers, functions and duties. The
41 training required by this section may be offered by providers approved
42 by the commissioner. In approving other providers for this training, the
43 commissioner shall consider the potential provider's understanding of
44 the educational environment, the roles of trustees and boards of educa-
45 tion and boards of cooperative educational services, and the experience
46 of the provider in delivering such training.
47 3. Each trustee or member shall demonstrate compliance with this
48 requirement by filing with the district clerk a certificate of
49 completion of such course issued by the provider. Actual and necessary
50 expenses incurred by a trustee or member in complying with the foregoing
51 requirement shall be a charge against the school district.
52 4. As long as the chancellor of a school district in a city having a
53 population of one million or more inhabitants shall annually certify to
54 the commissioner that such district has a training program that meets or
55 exceeds the requirements of this section, the provisions of this section
56 shall not apply to such school district.
A. 6082--B 4
1 § 6. Subdivision 3 of section 2116-a of the education law, as amended
2 by section 27 of part A of chapter 436 of the laws of 1997, is amended
3 to read as follows:
4 3. (a) The school authorities of each school district, except those
5 employing fewer than eight teachers, but including the city school
6 districts of the cities of Buffalo and Rochester, shall obtain an annual
7 audit of its records by an independent certified public accountant or an
8 independent public accountant. The report of such annual audit shall be
9 presented to the trustees or board of education by such accountant. The
10 board of education of the city school district of the city of New York,
11 districts of such city shall obtain an annual audit by the comptroller
12 of the city of New York, or by an independent certified public account-
13 ant or an independent public accountant. Such city school district
14 audit shall include, but not be limited to, transactions processed at
15 the level of the central administrative office, the district, and the
16 individual school. The [boards of education of the] community districts
17 of such city school district shall obtain an annual audit by the bureau
18 of audit of the board of education of the city school district of the
19 city of New York or by an independent certified public accountant or an
20 independent public accountant. A copy of the audit report in form
21 prescribed by the commissioner and certified by the accountant, or, in
22 the city school district of the city of New York or the community
23 districts therein, by the accountant, or the comptroller or bureau of
24 audit, as the case may be, shall be furnished to the commissioner on or
25 before October [first] thirtieth following the end of the fiscal year
26 audited, except that such report shall be furnished to the commissioner
27 on or before January first following the end of the fiscal year audited
28 for the city school districts of the cities of Buffalo, Rochester, Syra-
29 cuse, Yonkers, and New York and for the community school districts of
30 the city of New York.
31 (b) On or after July first, two thousand five, all school districts,
32 except the city school district of the city of New York, shall utilize a
33 competitive request for proposal process when contracting for such annu-
34 al audit. In addition, on or after July first, two thousand five, and
35 applicable to all school districts, no audit engagement shall be for a
36 term longer than five consecutive years; provided, however, that nothing
37 in this subdivision shall preclude a district, in it discretion, from
38 permitting an independent certified public accountant or an independent
39 public accountant engaged under an existing contract for such services
40 to (i) submit a proposal for such services in response to a request for
41 competitive proposals, or (ii) be awarded a contract to provide such
42 services under a request for proposal process. School district procure-
43 ment policies and procedures adopted pursuant to section one hundred
44 four-b of the general municipal law shall be amended, if necessary, to
45 be consistent with this requirement.
46 (c) Notwithstanding the provisions of subparagraph one of paragraph
47 (b) of subdivision four of section thirty-five of the general municipal
48 law, each school district shall (i) prepare a corrective action plan in
49 response to any findings contained in the annual external audit report
50 or management letter, or any final audit report issued by the state
51 comptroller, within ninety days of receipt of such report or letter, and
52 (ii) to the extent practicable, begin implementation of such corrective
53 action plan no later than the end of the next fiscal year.
54 § 7. The education law is amended by adding two new sections 2116-b
55 and 2116-c to read as follows:
A. 6082--B 5
1 § 2116-b. Internal audit function. 1. No later than July first, two
2 thousand six, each school district shall establish an internal audit
3 function to be in operation no later than the following December thir-
4 ty-first. Such function shall include: (a) development of a risk assess-
5 ment of district operations, including but not limited to, a review of
6 financial policies and procedures and the testing and evaluation of
7 district internal controls; (b) an annual review and update of such risk
8 assessment; and (c) preparation of reports, at least annually or more
9 frequently as the trustees or board of education may direct, which
10 analyze significant risk assessment findings, recommend changes for
11 strengthening controls and reducing identified risks, and specify time-
12 frames for implementation of such recommendations.
13 2. School districts of less than eight teachers, school districts with
14 actual general fund expenditures totaling less than five million dollars
15 in the previous school year, or school districts with actual enrollment
16 of less than three hundred students in the previous school year shall be
17 exempt from this requirement. Any school district claiming such
18 exemption shall annually certify to the commissioner that such school
19 district meets the requirements set forth in this subdivision.
20 3. The commissioner, in consultation with the comptroller, is author-
21 ized to promulgate regulations with respect to the internal audit func-
22 tion as is necessary for the proper performance of its duties, including
23 standards, qualifications and training for audit personnel. In develop-
24 ing such regulations, the commissioner shall consider the differing
25 needs, capabilities and environments of school districts of varying
26 sizes across the state.
27 4. A district shall be permitted to utilize existing district person-
28 nel to fulfill this function, but such persons shall not have any
29 responsibility for other business operations of the district while
30 performing such function.
31 5. A district shall be permitted to use (a) inter-municipal cooper-
32 ative agreements, (b) shared services to the extent authorized by
33 section nineteen hundred fifty of this title, or (c) independent
34 contractors, to fulfill this function as long as personnel or entities
35 performing the internal audit function comply with any regulations
36 issued by the commissioner and meet professional auditing standards for
37 independence between the auditor and the district.
38 6. Personnel or entities performing the internal audit function shall
39 report directly to the trustees or board of education of each district.
40 The district audit committee established under section twenty-one
41 hundred sixteen-c of this article shall assist in the oversight of the
42 internal audit function on behalf of the trustees or board.
43 7. Nothing in this section shall be construed as requiring a school
44 district in any city with a population of one hundred twenty-five thou-
45 sand or more to replace or modify an existing internal audit function
46 where such function already exists by special or local law, so long as
47 the superintendent of the district annually certifies to the commission-
48 er that the existing internal audit function meets or exceeds the
49 requirements of this section.
50 § 2116-c. Audit committees. 1. Every school district, except those
51 employing fewer than eight teachers, shall establish by a resolution of
52 the trustees or board of education an audit committee to oversee and
53 report to the trustees or board on the annual audit of the district
54 records as required by section twenty-one hundred sixteen-a of this
55 article.
A. 6082--B 6
1 2. The audit committee shall be established no later than January
2 first, two thousand six as a committee of the trustees or board, as an
3 advisory committee, or as a committee of the whole. An advisory commit-
4 tee may include, or be composed entirely of persons other than trustees
5 or members of the board if, in the opinion of the trustees or board,
6 such membership is advisable to provide accounting and auditing exper-
7 tise.
8 3. The audit committee shall consist of at least three members, who
9 shall serve without compensation. Committee members shall be reimbursed
10 for any actual and necessary expenditures incurred in relation to
11 attendance at meetings. Employees of the school district are prohibited
12 from serving on the audit committee. A member of an audit committee
13 shall be deemed a school district officer for the purposes of sections
14 thirty-eight hundred eleven through thirty-eight hundred thirteen of
15 this chapter, but shall not be required to be a resident of the school
16 district.
17 4. The role of an audit committee shall be advisory and any recommen-
18 dations it provides to the trustees or board under subdivisions five and
19 six of this section shall not substitute for any required review and
20 acceptance by the trustees or board of education. If required by a regu-
21 lation adopted by the commissioner, the annual audit report prepared by
22 an independent certified public accountant or an independent public
23 accountant shall not be deemed final until accepted by a resolution
24 adopted by the trustees or board of education.
25 5. It shall be the responsibility of the audit committee to:
26 (a) provide recommendations regarding the appointment of the external
27 auditor for the district;
28 (b) meet with the external auditor prior to commencement of the audit;
29 (c) review and discuss with the external auditor any risk assessment
30 of the district's fiscal operations developed as part of the auditor's
31 responsibilities under governmental auditing standards for a financial
32 statement audit and federal single audit standards if applicable;
33 (d) receive and review the draft annual audit report and accompanying
34 draft management letter and, working directly with the external auditor,
35 assist the trustees or board of education in interpreting such docu-
36 ments;
37 (e) make a recommendation to the trustees or board of education on
38 accepting the annual audit report; and
39 (f) review every corrective action plan to be developed by a school
40 district as required by section twenty-one hundred sixteen-a of this
41 article and assist the trustees or board of education in the implementa-
42 tion of such plan.
43 6. In addition, it shall be the responsibility of the audit committee
44 to assist in the oversight of the internal audit function required by
45 section twenty-one hundred sixteen-b of this article, including, but not
46 limited to, providing recommendations regarding the appointment of the
47 internal auditor for the school district, the review of significant
48 findings and recommendations of the internal auditor, monitoring of the
49 school district's implementation of such recommendations, and the evalu-
50 ation of the performance of the internal audit function.
51 7. Notwithstanding any provision of article seven of the public offi-
52 cers law or any other law to the contrary, a school district audit
53 committee may conduct an executive session pursuant to section one
54 hundred five of the public officers law pertaining to any matter set
55 forth in paragraphs b, c, and d of subdivision five of this section. Any
56 trustee or member of the board of education who is not a member of such
A. 6082--B 7
1 audit committee may be allowed to attend an audit committee meeting if
2 authorized by a resolution of the trustees or board of education.
3 8. The commissioner is authorized to promulgate regulations with
4 respect to audit committees as is necessary for the proper performance
5 of their duties.
6 9. As long as the chancellor of a school district in a city having a
7 population of one million or more inhabitants shall annually certify to
8 the commissioner that such district has a process for review by an audit
9 committee of the district's annual audit that meets or exceeds the
10 requirements of this section, the provisions of this section shall not
11 apply to such school district.
12 § 8. Subdivision 5 of section 2503 of the education law, as added by
13 chapter 762 of the laws of 1950, is amended to read as follows:
14 5. Shall create, abolish, maintain and consolidate such positions,
15 divisions, boards or bureaus as, in its judgment, may be necessary for
16 the proper and efficient administration of its work; shall appoint prop-
17 erly qualified persons to fill such positions, including a superinten-
18 dent of schools, such associate, assistant and other superintendents,
19 directors, supervisors, principals, teachers, lecturers, special
20 instructors, medical inspectors, nurses, claims auditors, attendance
21 officers, secretaries, clerks, custodians, janitors and other employees
22 and other persons or experts in educational, social or recreational work
23 or in the business management or direction of its affairs as said board
24 shall determine necessary for the efficient management of the schools
25 and other educational, social, recreational and business activities; and
26 shall determine their duties except as otherwise provided herein.
27 § 9. Subdivision 5 of section 2508 of the education law, as added by
28 chapter 762 of the laws of 1950, is amended to read as follows:
29 5. To have supervision and direction of associate, assistant and other
30 superintendents, directors, supervisors, principals, teachers, lectur-
31 ers, medical inspectors, nurses, claims auditors, attendance officers,
32 janitors and other persons employed in the management of the schools or
33 the other educational activities of the district authorized by this
34 chapter and under the direction and management of the board of educa-
35 tion; to transfer teachers from one school to another, or from one grade
36 of the course of study to another grade in such course, and to report
37 immediately such transfers to such board for its consideration and
38 action; to report to such board violations of regulations and cases of
39 insubordination, and to suspend an associate, assistant or other super-
40 intendent, director, supervisor, expert, principal, teacher or other
41 employee until the next regular meeting of such board, when all facts
42 relating to the case shall be submitted to such board for its consider-
43 ation and action.
44 § 10. Subdivision 4 of section 2509 of the education law, as added by
45 chapter 762 of the laws of 1950 and as renumbered by chapter 717 of the
46 laws of 1970, is amended to read as follows:
47 4. Clerks, draftsmen, inspectors, chemists, tabulating machine opera-
48 tors, [auditors,] secretaries, stenographers, copyists, statisticians,
49 janitors, custodians, custodian-engineers, and all other administrative
50 employees of a board of education, unless otherwise provided in this
51 chapter, shall be appointed for a probationary period provided in the
52 civil service law and regulations based thereon. The service of a person
53 appointed to any of such positions may be discontinued by the board of
54 education at any time during such probationary period. Such persons and
55 all others employed in the administrative service of the board of educa-
56 tion who have served the full probationary period shall hold their
A. 6082--B 8
1 respective positions during good behavior and efficient and competent
2 service, and shall not be removed except for cause after a hearing by
3 the affirmative vote of a majority of the board.
4 § 11. Subdivision 2 of section 2523 of the education law, as amended
5 by chapter 654 of the laws of 1972, is amended to read as follows:
6 2. Such moneys shall be disbursed only on the signature of such treas-
7 urer by checks payable to the person or persons entitled thereto. The
8 board of education may in its discretion require that such checks-other
9 than checks for salary, be countersigned by another officer of such
10 district. When authorized by resolution of the board of education such
11 checks may be signed with the facsimile signature of the treasurer and
12 other district officer whose signature is required, as reproduced by a
13 machine or device commonly known as a check-signer. Each check drawn by
14 the treasurer shall state the fund against which it is drawn. No fund
15 shall be overdrawn nor shall any check be drawn upon one fund to pay a
16 claim chargeable to another. No money shall be paid out by the treasur-
17 er except upon the warrant of the clerk of the board of education after
18 audit and allowance by such board, or if [an] a claims auditor shall
19 have been appointed, except upon the warrant of such claims auditor
20 after audit and allowance thereof; provided, however, when provision for
21 payment has been made in the annual budget the treasurer may pay, with-
22 out such warrant or prior audit and allowance, (a) the principal of and
23 interest on bonds, notes or other evidences of indebtedness of the
24 district or for the payment of which the district shall be liable, and
25 (b) compensation for services of officers or employees engaged at
26 agreed wages by the hour, day, week, month or year upon presentation of
27 a duly certified payroll. By resolution duly adopted, the board may
28 determine to enter into a contract to provide for the deposit of the
29 periodic payroll of the school district in a bank or trust company for
30 disbursal by it in accordance with provisions of section ninety-six-b of
31 the banking law.
32 § 12. Subdivision 1 of section 2524 of the education law, as amended
33 by chapter 203 of the laws of 1971, is amended to read as follows:
34 1. No claim against a city school district, except for compensation
35 for services of an officer or employee engaged at agreed wages by the
36 hour, day, week, month or year or for the principal of or interest on
37 indebtedness of the district, shall be paid unless an itemized voucher
38 therefor approved by the officer whose action gave rise or origin to the
39 claim, shall have been presented to the board of education or claims
40 auditor of the city school district and shall have been audited and
41 allowed. The board of education shall be authorized, but not required,
42 to prescribe the form of such voucher.
43 § 13. Section 2525 of the education law, as amended by chapter 741 of
44 the laws of 1954, subdivisions 1 and 2 as amended by chapter 838 of the
45 laws of 1968, is amended to read as follows:
46 § 2525. Audit of claims. 1. The board of education, in considering
47 any claim, may require any person presenting the same to be sworn before
48 it or before any member thereof and to give testimony relative to the
49 justness and accuracy of such claim, and may take evidence and examine
50 witnesses under oath in respect to the claim, and for that purpose may
51 issue subpoenas for the attendance of witnesses. When a claim has been
52 finally audited by the board of education the clerk of such board shall
53 endorse thereon or attach thereto a certificate of such audit and file
54 the same as a public record in his or her office. When any claim has
55 been so audited and a certificate thereof so filed, the clerk of the
56 board of education shall draw a warrant specifying the name of the
A. 6082--B 9
1 claimant, the amount allowed and the fund, function and object chargea-
2 ble therewith and such other information as may be deemed necessary and
3 essential, directed to the treasurer of the district, authorizing and
4 directing him or her to pay to the claimant the amount allowed upon his
5 or her claim. A copy of such warrant shall be filed in the office of the
6 clerk.
7 2. In a city school district in which the office of claims auditor has
8 been created, the claims auditor in considering a claim, may require any
9 person presenting the same to be sworn before him or her and to give
10 testimony relative to the justness and accuracy of such claim, and may
11 take evidence and examine witnesses under oath in respect to the claim,
12 and for that purpose may issue subpoenas for the attendance of
13 witnesses. When a claim has been finally audited by the claims auditor
14 he or she shall endorse thereon or attach thereto a certificate of such
15 audit and file the same as a public record in his or her office. When
16 any claim has been so audited and a certificate thereof so filed, the
17 claims auditor shall draw a warrant specifying the number of the claim,
18 the name of the claimant, the amount allowed and the fund, function and
19 object chargeable therewith and such other information as may be deemed
20 necessary or essential, directed to the treasurer of the district,
21 authorizing and directing him or her to pay to the claimant the amount
22 allowed upon his or her claim. A copy of such warrant shall be filed in
23 the office of the clerk.
24 § 14. Section 2526 of the education law, as added by chapter 762 of
25 the laws of 1950 and subdivision 1 as amended by chapter 566 of the laws
26 of 1968, is amended to read as follows:
27 § 2526. [Auditor] Claims auditor. 1. The board of education of a city
28 school district may adopt a resolution establishing the office of claims
29 auditor and appoint [an] a claims auditor who shall hold his or her
30 position subject to the pleasure of such board of education. Such claims
31 auditor shall report directly to the board of education. No person shall
32 be eligible for appointment to the office of claims auditor who shall
33 be:
34 (1) a member of the board of education;
35 (2) the clerk or treasurer of the board of education;
36 (3) the superintendent of schools or other official of the district
37 responsible for business management;
38 (4) the person designated as purchasing agent; [and] or
39 (5) clerical or professional personnel directly involved in accounting
40 and purchasing functions of the school district.
41 1-a. The position of claims auditor shall be classified in the exempt
42 class of civil service. Such board of education, at any time after the
43 establishment of the office of claims auditor, may adopt a resolution
44 abolishing such office, whereupon such office shall be abolished.
45 2. When the office of claims auditor shall have been established and
46 [an] a claims auditor shall have been appointed and shall have quali-
47 fied, the powers and duties of the board of education with respect to
48 claims auditing, allowing or rejecting all accounts, charges, claims or
49 demands against the city school district shall devolve upon and there-
50 after be exercised by such claims auditor, during the continuance of
51 such office. The board of education shall be permitted to delegate the
52 claims audit function by using (1) inter-municipal cooperative agree-
53 ments, (2) shared services to the extent authorized by section nineteen
54 hundred fifty of this title, or (3) independent contractors, to fulfill
55 this function.
A. 6082--B 10
1 § 15. Section 2527 of the education law, as amended by chapter 487 of
2 the laws of 1967, is amended to read as follows:
3 § 2527. Official undertakings. The clerk of the board of education
4 or, where the office of claims auditor has been created, the claims
5 auditor, and the treasurer, collector and such other officers and
6 employees as the board of education shall designate, shall, before they
7 enter upon the duties of their respective offices or positions, each
8 execute to the school district and file with the school district clerk
9 an official undertaking in such sum and with such corporate surety as
10 the board of education shall direct and approve. The board of education
11 may, at any time, require any such officer or employee to file a new
12 official undertaking for such sum and with such corporate surety as the
13 board shall approve. Such undertakings as shall have been approved by
14 the board of education shall forthwith be filed with the school district
15 clerk. The expense of any undertaking executed pursuant to this section
16 shall be a school district charge.
17 § 16. Subdivision 2-a of section 2554 of the education law, as added
18 by chapter 452 of the laws of 1964, is amended to read as follows:
19 2-a. a. In its discretion to adopt a resolution establishing the
20 office of claims auditor and appoint [an] a claims auditor who shall
21 hold his or her position subject to the pleasure of the board. Such
22 claims auditor shall report directly to the board of education. No
23 person shall be eligible for appointment to the office of claims auditor
24 who shall be
25 (1) a member of the board of education [or];
26 (2) a clerk or treasurer of the board of education;
27 (3) the superintendent of schools or other official of the district
28 responsible for business management;
29 (4) the person designated as purchasing agent; or
30 (5) clerical or professional personnel directly involved in accounting
31 and purchasing functions of the school district.
32 b. The position of claims auditor shall be classified in the exempt
33 class of civil service. The board of education, at any time after the
34 establishment of the office of claims auditor, may adopt a resolution
35 abolishing the office. When the office of claims auditor shall have been
36 established and [an] a claims auditor shall have been appointed and
37 shall have qualified, the powers and duties of the board of education
38 with respect to auditing accounts, charges, claims or demands against
39 the city school district shall devolve upon and thereafter be exercised
40 by such claims auditor, during the continuance of the office. The board
41 of education shall be permitted to delegate the claims audit function by
42 using (1) inter-municipal cooperative agreements, or (2) independent
43 contractors, to fulfill this function.
44 § 17. Subdivision 2 of section 2562 of the education law, as amended
45 by chapter 494 of the laws of 1953, is amended to read as follows:
46 2. The said board of education may require any person presenting for
47 settlement an account or claim for any cause whatever against it to be
48 sworn before it or a committee thereof, or before the claims auditor, or
49 before any person designated by said board, touching such account or
50 claim, and when so sworn, to answer orally as to any facts relative to
51 the justness of such account or claim. A member of the board, the
52 claims auditor, or any other person designated as hereinbefore stated,
53 shall have the power to administer an oath to any person who shall give
54 testimony to the justness of such account or claim, and for the purpose
55 of securing such testimony may issue subpoenas for the attendance of
56 witnesses. Wilful false swearing before the said board of education, a
A. 6082--B 11
1 committee thereof, the claims auditor, or before any person designated
2 as hereinbefore stated, is perjury and punishable as such.
3 § 18. Subdivision 6 of section 2566 of the education law, as amended
4 by section 3 of part B of chapter 88 of the laws of 2000, is amended to
5 read as follows:
6 6. To have supervision and direction of associate, assistant, district
7 and other superintendents, directors, supervisors, principals, teachers,
8 lecturers, medical inspectors, nurses, claims auditors, attendance offi-
9 cers, janitors and other persons employed in the management of the
10 schools or the other educational activities of the city authorized by
11 this chapter and under the direction and management of the board of
12 education, except that in the city school districts of the cities of
13 Buffalo and Rochester to also appoint, within the amounts budgeted
14 therefor, such associate, assistant and district superintendents and all
15 other supervising staff who are excluded from the right to bargain
16 collectively pursuant to article fourteen of the civil service law; to
17 transfer teachers from one school to another, or from one grade of the
18 course of study to another grade in such course, and to report imme-
19 diately such transfers to said board for its consideration and action;
20 to report to said board of education violations of regulations and cases
21 of insubordination, and to suspend an associate, assistant, district or
22 other superintendent, director, supervisor, expert, principal, teacher
23 or other employee until the next regular meeting of the board, when all
24 facts relating to the case shall be submitted to the board for its
25 consideration and action.
26 § 19. Subdivision 4 of section 2573 of the education law, as amended
27 by chapter 116 of the laws of 1971, is amended to read as follows:
28 4. Clerks, draftsmen, inspectors, chemists, tabulating machine opera-
29 tors, [auditors,] secretaries, stenographers, copyists, statisticians,
30 janitors, custodians, custodian-engineers, and all other administrative
31 employees of a board of education, unless otherwise provided in this
32 chapter, shall be appointed for a probationary period provided in the
33 civil service law and regulations based thereon. The service of a person
34 appointed to any of such positions may be discontinued by the board of
35 education at any time during such probationary period. Such persons who
36 have served the full probationary period shall hold their respective
37 positions during good behavior and efficient and competent service, and
38 shall not be removed except for cause after a hearing by the affirmative
39 vote of a majority of the board.
40 § 20. Paragraph a of subdivision 1 of section 2576 of the education
41 law, such section as renumbered by chapter 762 of the laws of 1950, is
42 amended to read as follows:
43 a. The salary of the superintendent of schools, associate, district or
44 assistant or other superintendents, examiners, directors, supervisors,
45 principals, teachers, lecturers, special instructors, claims auditors,
46 medical inspectors, nurses, attendance officers, clerks, custodians and
47 janitors and the salary, fees or compensation of all other employees
48 appointed or employed by said board of education. In addition, the
49 expenses of personnel utilized to fulfill the internal audit function
50 pursuant to section twenty-one hundred sixteen-b of this chapter.
51 § 21. Subdivision 2 of section 2580 of the education law, as amended
52 by chapter 452 of the laws of 1964, is amended to read as follows:
53 2. Such funds shall be disbursed by authority of the board of educa-
54 tion upon written orders drawn on the city treasurer or other fiscal
55 officer of the city. Such orders shall be signed by the superintendent
56 of schools and the secretary of the board of education or such other
A. 6082--B 12
1 officers as the board may authorize. If [an] a claims auditor shall have
2 been appointed, orders shall be signed by the claims auditor; provided,
3 however, that the board may require, in addition, the signature of such
4 other officer or officers as it may by resolution direct. Orders shall
5 be numbered consecutively and shall specify the purpose for which they
6 are drawn and the person or corporation to whom they are payable.
7 § 22. This act shall take effect immediately; provided, however, that
8 paragraph b of subdivision 35 of section 1604 of the education law as
9 added by section one of this act, the amendments to paragraph b of
10 subdivision 20-a of section 1709 of the education law made by section
11 two of this act, the amendments to subdivision 1-a of section 2526 of
12 the education law made by section fourteen of this act, the amendments
13 to paragraph b of subdivision 2-a of section 2554 of the education law
14 made by section sixteen of this act, and the provisions of sections ten
15 and nineteen of this act, to the extent they relate to the position of
16 claims auditor as being in the exempt class of the civil service, shall
17 not apply to any such auditors appointed before the effective date of
18 this act; and provided further, however, that nothing in this act shall
19 preclude a school district from permitting an independent certified
20 public accountant or an independent public accountant engaged under a
21 contract entered into before the effective date of this act to submit a
22 proposal pursuant to the provisions of section six of this act.
