§ 2580. Funds; custody and disbursement. 1. Public moneys apportioned
to a city by the state and all funds raised or collected by the
authorities in a city for school purposes or to be used by the board of
education for any purpose authorized in this chapter, or any other funds
belonging to a city and received from any source whatsoever for similar
purposes, shall be paid into the treasury of such city and shall be
credited to the board of education. The funds so received into such
treasury shall be kept separate and distinct from any other funds
received into the said treasury. The officer having the charge thereof
shall give such additional security for the safe custody thereof as the
corporate authorities of such city shall require.

2. Such funds shall be disbursed by authority of the board of
education upon written orders drawn on the city treasurer or other
fiscal officer of the city. Such orders shall be signed by the
superintendent of schools and the secretary of the board of education or
such other officers as the board may authorize. If a claims auditor
shall have been appointed, orders shall be signed by the claims auditor;
provided, however, that the board may require, in addition, the
signature of such other officer or officers as it may by resolution
direct. Orders shall be numbered consecutively and shall specify the
purpose for which they are drawn and the person or corporation to whom
they are payable.

3. Fixed salaries, principal of and interest on indebtedness and
amounts becoming due upon lawful contracts for periods exceeding one
year may be disbursed without prior audit of the board of education. By
resolution duly adopted, the board may determine to enter into a
contract to provide for the deposit of the periodic payroll of the
school district in a bank or trust company for disbursal by it in
accordance with provisions of section ninety-six-b of the banking law.

4. It shall be unlawful for a city treasurer or other officer having
the custody of such city funds to permit their use for any purpose other
than that for which they are lawfully authorized; they shall be paid out
only on audit of the board of education or as otherwise provided herein.
Payments from such funds shall be made only by checks signed by the
treasurer or other custodian of such moneys and payable to the person or
persons entitled thereto and countersigned either by the comptroller, or
in a city having no comptroller, by an officer designated by the officer
or body having the general control of the financial affairs of such
city. The board of education of such city shall make, in addition to
such classification of its funds and accounts as it desires for its own
use and information, such further classification of the funds under its
management and control and of the disbursements thereof as the
comptroller of the city, or the officer or body having the general
control of the financial affairs of such city, shall require, and such
board shall furnish such data in relation to such funds and their
disbursements as the comptroller or such other financial officer or body
of the city shall require.