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

                                 4662--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 27, 2009
                               ___________

Introduced  by  Sen.  FOLEY  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Education  --  recommitted
  to the Committee on Education in accordance with Senate Rule 6, sec. 8
  --  committee  discharged,  bill amended, ordered reprinted as amended
  and recommitted to said committee

AN ACT to amend the education law, in  relation  to  permitting  munici-
  palities  to recover costs associated with audits of preschool provid-
  ers

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph c of subdivision 11 of section 4410 of the educa-
tion  law, as added by chapter 243 of the laws of 1989, subparagraph (i)
as amended by chapter 82 of the  laws  of  1995,  subparagraph  (ii)  as
amended  by  chapter  205  of  the  laws  of 2009, is amended to read as
follows:
  c. (i) Each municipality, or, in addition, in the case of  a  city  of
one  million  or  more persons, the board, may perform a fiscal audit of
such services or programs for which it bears  fiscal  responsibility  in
accordance  with  audit standards established by the commissioner, which
may include site visitation. Prior to commencing a fiscal audit pursuant
to this subparagraph, a municipality shall ascertain  that  neither  the
state  nor  any  other  municipality has performed a fiscal audit of the
same services or programs  within  the  current  fiscal  year  for  such
program.  If it is determined that no such audit has been performed, the
municipality shall inquire with the department to determine which  other
municipalities,  if  any, bear financial responsibility for the services
or programs to be audited and shall afford such other municipalities  an
opportunity to recommend issues to be examined through the audit.  Muni-
cipalities completing audits pursuant to this subparagraph shall provide
copies  to the department, the provider of the services and programs and
all other municipalities previously determined to bear financial respon-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11435-02-0
              

S. 4662--A                          2

sibility for the audited services and programs.  No  other  municipality
may  conduct an additional fiscal audit of the same services or programs
during such current fiscal year for such program.
  (ii)  Payments  made pursuant to this section by a municipality shall,
upon conclusion of the July first to  June  thirtieth  school  year  for
which  such  payment  was  made,  be subject to audit against the actual
difference between such audited expenditures and revenues.  The  munici-
pality  shall  submit  the results of any such audit to the commissioner
and the commissioner of social services, if appropriate, for review and,
if warranted, adjustment of the tuition and/or  maintenance  rates.  The
municipality is authorized to recover overpayments made to a provider of
special  services  or programs pursuant to this section as determined by
the commissioner or the commissioner of health based upon their  adjust-
ment  of a tuition and/or maintenance rate.  Such recovery may be accom-
plished by withholding such amount from any moneys due the  provider  in
the  current  year,  or by direct reimbursement.  WHERE ANY OVERPAYMENTS
ARE RECOVERED AS A RESULT OF AN AUDIT PERFORMED BY A  MUNICIPALITY,  THE
TOTAL  COSTS  ASSOCIATED  WITH  CONDUCTING  SUCH AUDIT SHALL BE ASSESSED
AGAINST THE STATE SHARE OF THE RECOVERED MONEYS.
  S 2. This act shall take effect immediately.