§ 2116-a. Books and records to be kept by school districts. Unless
otherwise prescribed by the state comptroller pursuant to section
thirty-six of the general municipal law:

1. All school districts shall be required to maintain books and
records in such form as the commissioner of education shall approve.

2. All school districts, except those employing fewer than eight
teachers, shall be required to use a double entry bookkeeping system
incorporating the fund method of accounting in accordance with a uniform
system of accounts approved by the commissioner of education and any
school district under the jurisdiction of a district superintendent may
at its option request the district superintendent to provide such
accounting service. The cost of accounting service so requested shall be
allocated by the district superintendent to and be paid by the school
district receiving such service.

3. (a) The school authorities of each school district, except those
employing fewer than eight teachers, but including the city school
districts of the cities of Buffalo and Rochester, shall obtain an annual
audit of its records by an independent certified public accountant or an
independent public accountant. The report of such annual audit shall be
presented to the trustees or board of education by such accountant. The
board of education of the city school district of the city of New York,
districts of such city shall obtain an annual audit by the comptroller
of the city of New York, or by an independent certified public
accountant or an independent public accountant. Such city school
district audit shall include, but not be limited to, transactions
processed at the level of the central administrative office, the
district, and the individual school. The community districts of such
city school district shall obtain an annual audit by the bureau of audit
of the board of education of the city school district of the city of New
York or by an independent certified public accountant or an independent
public accountant. A copy of the audit report in form prescribed by the
commissioner and certified by the accountant, or, in the city school
district of the city of New York or the community districts therein, by
the accountant, or the comptroller or bureau of audit, as the case may
be, shall be furnished to the commissioner on or before October
fifteenth following the end of the fiscal year audited, except that such
report shall be furnished to the commissioner on or before January first
following the end of the fiscal year audited for the city school
districts of the cities of Buffalo, Rochester, Syracuse, Yonkers, and
New York and for the community school districts of the city of New York.

(b) On or after July first, two thousand five, all school districts,
except the city school district of the city of New York, shall utilize a
competitive request for proposal process when contracting for such
annual audit. In addition, on or after July first, two thousand five,
and applicable to all school districts, no audit engagement shall be for
a term longer than five consecutive years; provided, however, that
nothing in this subdivision shall preclude a district, in its
discretion, from permitting an independent certified public accountant
or an independent public accountant engaged under an existing contract
for such services to (i) submit a proposal for such services in response
to a request for competitive proposals, or (ii) be awarded a contract to
provide such services under a request for proposal process. School
district procurement policies and procedures adopted pursuant to section
one hundred four-b of the general municipal law shall be amended, if
necessary, to be consistent with this requirement.

(c) Notwithstanding the provisions of subparagraph one of paragraph
(b) of subdivision four of section thirty-five of the general municipal
law, each school district shall (i) prepare a corrective action plan in
response to any findings contained in the annual external audit report
or management letter, or any final audit report issued by the state
comptroller, within ninety days of receipt of such report or letter, and
(ii) to the extent practicable, begin implementation of such corrective
action plan no later than the end of the next fiscal year.

3-a. In addition to the annual audit required by subdivision three of
this section, each school district and board of cooperative educational
services within the state shall be subject to audits of the state
conducted by the comptroller as set forth in section thirty-three of the
general municipal law.

3-b. Each school district shall in a timely fashion post on its
website, if any, the annual external audit report and the corrective
action plan prepared in response to any findings contained in the annual
external audit report or management letter, or any final audit report
issued by the state comptroller.

4. The school authorities of each school district may employ or
contract for the preparation of payrolls, accounts and records by
persons, firms or corporations using electronic computer systems.