NY State Senate Bill 2021-S6936

Senate Bill S6936

2021-2022 Legislative Session

Extends provisions for internal audits by school districts from annually to every five years

download bill text pdf

Archive: Last Bill Status - In Senate Committee Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to education
May 20, 2021	referred to education

2021-S6936 (ACTIVE) - Details

Current Committee:: Senate Education
Law Section:: Education Law
Laws Affected:: Amd §2116-b, Ed L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S4486
2013-2014: S2501
2015-2016: S1051
2017-2018: S2597
2019-2020: S2955

2021-S6936 (ACTIVE) - Summary

Extends provisions for internal audits by school districts from annually to every five years.

2021-S6936 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S6936

SPONSOR: RATH
 
TITLE OF BILL:

An act to amend the education law, in relation to extending provisions
for internal audits by school districts from annually to every five
years

 
PURPOSE OR GENERAL IDEA OF BILL:

To reduce the duplicative and onerous requirement of both internal and
external annual audits.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 - amends subdivisions one and seven of section 2116-b of the
Education Law, as added by Chapter 263 of the Laws of 2005 to change the
requirement mandated by this section for school districts to perform
internal audits annually to require such audit every five years.

Section 2 - provides that this act shall become effective take effect on

the first day of July next succeeding the date on which it shall have
become law.

 
JUSTIFICATION:

School districts are required by Education Law 2116-a to obtain annual
external audits. The requirement that they also perform an internal
audit each year, essentially duplicating the same efforts put into the
external audit, is wasteful and represents an unfunded mandate that puts
yet one more financial burden on school districts that are facing chal-
lenging reductions instate aid. In addition to the annual external
audits, school districts also must deal with regular audits by the Comp-
troller. One district has reported that within one twelve month span,
they had to tear business office workers away from their usual duties to
work with auditors for five separate audits - two internal audits, two
external audits and one Comptroller audit. It is critical that the state
begin to reduce wasteful and duplicative mandates on our.schools to
reduce costs, and by extension, real property taxes on our residents and
businesses.

 
PRIOR LEGISLATIVE HISTORY:

2011-12 - S.4486/A.8404 - PASSED SEN/Education

2013-14 - S.2501/A.4166 - EDUCATION/Education

2015-16 - S.1051/A.4345 - PASSED SENATE/Education

2017 - S.2597/A.4467 - PASSED SENATE/Education

2018 - S.2597/A.4467 - FINANCE/Education

2019-20 - S.2955 - EDUCATION

 
FISCAL IMPLICATIONS:

Savings to school districts across the state.
 
EFFECTIVE DATE:
This act shall take effect on the first day of July next succeeding the
date on which it shall have become law.

2021-S6936 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6936
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               May 20, 2021
                                ___________
 
 Introduced  by  Sen.  RATH  --  read twice and ordered printed, and when
   printed to be committed 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.
                                                            LBD11636-01-1

 S. 6936                             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.

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