S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4467
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 2, 2017
                                ___________
 
 Introduced  by  M.  of  A.  SCHIMMINGER -- read once and referred to the
   Committee on Education
 
 AN ACT to amend the education law, in relation to  extending  provisions
   for  internal  audits  by school districts from annually to every five
   years
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions  1  and 7 of section 2116-b of the education
 law, as added by chapter 263 of the laws of 2005, are amended 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 annu-
 al] 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.    AUDITS  PERFORMED  PURSUANT TO THIS SECTION SHALL BE
 COMPLETED EVERY FIVE YEARS.
   7. Nothing in this section shall be construed as  requiring  a  school
 district  in any city with a population of one hundred twenty-five thou-
 sand 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  commis-
 sioner  that  the  existing internal audit function meets or exceeds the
 requirements of this section;  PROVIDED,  HOWEVER,  NOTWITHSTANDING  ANY

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06146-01-7
              

 A. 4467                             2
 
 SPECIAL  OR  LOCAL  LAW  TO THE CONTRARY, SCHOOL DISTRICTS SHALL PERFORM
 SUCH INTERNAL AUDITS EVERY FIVE YEARS.
   §  2.  This act shall take effect on the first of July next succeeding
 the date on which it shall have become a law.