§ 2116-c. Audit committees.
1.Every school district, except those\nemploying fewer than eight teachers, shall establish by a resolution of\nthe trustees or board of education an audit committee to oversee and\nreport to the trustees or board on the annual audit of the district\nrecords as required by section twenty-one hundred sixteen-a of this\narticle.\n 2. The audit committee shall be established no later than January\nfirst, two thousand six as a committee of the trustees or board, as an\nadvisory committee, or as a committee of the whole. An advisory\ncommittee may include, or be composed entirely of persons other than\ntrustees or members of the board if, in the opinion of the trustees or\nboard, such membership is advisable to provide accounting and auditing\nexpertise.\n 3. Th
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§ 2116-c. Audit committees. 1. Every school district, except those\nemploying fewer than eight teachers, shall establish by a resolution of\nthe trustees or board of education an audit committee to oversee and\nreport to the trustees or board on the annual audit of the district\nrecords as required by section twenty-one hundred sixteen-a of this\narticle.\n 2. The audit committee shall be established no later than January\nfirst, two thousand six as a committee of the trustees or board, as an\nadvisory committee, or as a committee of the whole. An advisory\ncommittee may include, or be composed entirely of persons other than\ntrustees or members of the board if, in the opinion of the trustees or\nboard, such membership is advisable to provide accounting and auditing\nexpertise.\n 3. The audit committee shall consist of at least three members, who\nshall serve without compensation. Committee members shall be reimbursed\nfor any actual and necessary expenditures incurred in relation to\nattendance at meetings. Employees of the school district are prohibited\nfrom serving on the audit committee. A member of an audit committee\nshall be deemed a school district officer for the purposes of sections\nthirty-eight hundred eleven through thirty-eight hundred thirteen of\nthis chapter, but shall not be required to be a resident of the school\ndistrict.\n 4. The role of an audit committee shall be advisory and any\nrecommendations it provides to the trustees or board under subdivisions\nfive and six of this section shall not substitute for any required\nreview and acceptance by the trustees or board of education. If required\nby a regulation adopted by the commissioner, the annual audit report\nprepared by an independent certified public accountant or an independent\npublic accountant shall not be deemed final until accepted by a\nresolution adopted by the trustees or board of education.\n 5. It shall be the responsibility of the audit committee to:\n (a) provide recommendations regarding the appointment of the external\nauditor for the district;\n (b) meet with the external auditor prior to commencement of the audit;\n (c) review and discuss with the external auditor any risk assessment\nof the district's fiscal operations developed as part of the auditor's\nresponsibilities under governmental auditing standards for a financial\nstatement audit and federal single audit standards if applicable;\n (d) receive and review the draft annual audit report and accompanying\ndraft management letter and, working directly with the external auditor,\nassist the trustees or board of education in interpreting such\ndocuments;\n (e) make a recommendation to the trustees or board of education on\naccepting the annual audit report; and\n (f) review every corrective action plan to be developed by a school\ndistrict as required by section twenty-one hundred sixteen-a of this\narticle and assist the trustees or board of education in the\nimplementation of such plan.\n 6. In addition, it shall be the responsibility of the audit committee\nto assist in the oversight of the internal audit function required by\nsection twenty-one hundred sixteen-b of this article, including, but not\nlimited to, providing recommendations regarding the appointment of the\ninternal auditor for the school district, the review of significant\nfindings and recommendations of the internal auditor, monitoring of the\nschool district's implementation of such recommendations, and the\nevaluation of the performance of the internal audit function.\n 7. Notwithstanding any provision of article seven of the public\nofficers law or any other law to the contrary, a school district audit\ncommittee may conduct an executive session pursuant to section one\nhundred five of the public officers law pertaining to any matter set\nforth in paragraphs b, c, and d of subdivision five of this section. Any\ntrustee or member of the board of education who is not a member of such\naudit committee may be allowed to attend an audit committee meeting if\nauthorized by a resolution of the trustees or board of education.\n 8. The commissioner is authorized to promulgate regulations with\nrespect to audit committees as is necessary for the proper performance\nof their duties.\n 9. As long as the chancellor of a school district in a city having a\npopulation of one million or more inhabitants shall annually certify to\nthe commissioner that such district has a process for review by an audit\ncommittee of the district's annual audit that meets or exceeds the\nrequirements of this section, the provisions of this section shall not\napply to such school district.\n