§ 2590-M — Custody and disbursement of funds

§ 2590-m. Custody and disbursement of funds. * 1. Public moneys\napportioned to the city district by the state and all funds raised or\ncollected by the authorities of such city for school purposes or to be\nused by the city board or by any community board for any purpose\nauthorized by this chapter, or any other funds belonging to the city\ndistrict or a community district and received from any source whatsoever\nfor school purposes, shall be paid into the city treasury and shall be\ncredited to the city board or to the respective community councils.\n * NB Effective until June 30, 2026\n * 1. Public moneys apportioned to the city district by the state and\nall funds raised or collected by the authorities of such city for school\npurposes or to be used by the city board or by any community board for\nany purpose authorized by this chapter, or any other funds belonging to\nthe city district or a community district and received from any source\nwhatsoever for school purposes, shall be paid into the city treasury and\nshall be credited to the city board or to the respective community\nboards.\n * NB Effective June 30, 2026\n 2. The fund so received into such treasury shall be kept separate and\ndistinct from any other funds received therein. The officer having\ncharge thereof shall give such additional security for the safe custody\nthereof as the corporate authorities of the city of New York shall\nrequire.\n * 3. a. Funds credited to the city board shall be disbursed upon\nwritten orders of the director of finance of the city signed by the\nchancellor or such other officer or officers as the city board\nauthorize. Funds credited to a community council shall be disbursed upon\nwritten orders of the director of finance of the city signed by the\ncommunity superintendent and such other officer or officers as such\nboard may authorize.\n b. If an auditor shall have been appointed by the chancellor or any\ncommunity district education council, such orders shall be signed by\nsuch auditor; provided, however, that the chancellor and any such\ndistrict education council may in addition require the signature of such\nother officer or officers as the chancellor may direct or as such\ndistrict education council may by resolution direct.\n c. Orders issued under this subdivision shall specify the purpose for\nwhich they are drawn and the person to whom they are payable.\n * NB Effective until June 30, 2026\n * 3. a. Funds credited to the city board shall be disbursed upon\nwritten orders of the director of finance of the city signed by the\nchancellor or such other officer or officers as the city board\nauthorize. Funds credited to a community board shall be disbursed upon\nwritten orders of the director of finance of the city signed by the\ncommunity superintendent and such other officer or officers as such\nboard may authorize.\n b. If an auditor shall have been appointed by the city board or any\ncommunity board, such orders shall be signed by such auditor; provided,\nhowever, that the city board and any such board may in addition require\nthe signature of such other officer or officers as it may by resolution\ndirect.\n c. Orders issued under this subdivision shall specify the purpose for\nwhich they are drawn and the person to whom they are payable.\n * NB Effective June 30, 2026\n * 4. a. It shall be unlawful for the director of finance of the city\nto permit any funds placed in his custody under the provisions of this\nsection to be used for any purpose other than that for which they are\nlawfully authorized.\n b. Such funds shall be paid out only on audit of the city board\nthrough the chancellor or the community council to which such funds are\ncredited, except as otherwise provided in subdivision five of this\nsection.\n c. Payments from such funds shall be made only by checks signed by the\ndirector of finance of the city and payable to the person entitled\nthereto and countersigned by the comptroller of the city of New York.\n * NB Effective until June 30, 2026\n * 4. a. It shall be unlawful for the director of finance of the city\nto permit any funds placed in his custody under the provisions of this\nsection to be used for any purpose other than that for which they are\nlawfully authorized.\n b. Such funds shall be paid out only on audit of the city board\nthrough the chancellor or the community board to which such funds are\ncredited, except as otherwise provided in subdivision five of this\nsection.\n c. Payments from such funds shall be made only by checks signed by the\ndirector of finance of the city and payable to the person entitled\nthereto and countersigned by the comptroller of the city of New York.\n * NB Effective June 30, 2026\n * 5. Fixed salaries, principal of and interest on indebtedness and\namounts becoming due upon lawful contracts for periods exceeding one\nyear may be disbursed without prior audit by the city board or the\ncouncil to which such funds are credited.\n * NB Effective until June 30, 2026\n * 5. Fixed salaries, principal of and interest on indebtedness and\namounts becoming due upon lawful contracts for periods exceeding one\nyear may be disbursed without prior audit by the city board or the board\nto which such funds are credited.\n * NB Effective June 30, 2026\n * 6. The chancellor, city board and each district education council\nreferred to in this section shall make, in addition to such\nclassification of its funds as it desires for its own use and\ninformation, such further classification of the funds credited to it and\nof the disbursement thereof as the comptroller of the city of New York\nshall require; provided that the classification of funds by community\ncouncils shall be in accordance with the altered schedules developed\npursuant to subdivision eight of section twenty-five hundred ninety-i of\nthis article. The chancellor, city board and community district\neducation councils shall furnish such data in relation to such funds and\ntheir disbursements as the comptroller of the city of New York shall\nrequire.\n * NB Effective until June 30, 2026\n * 6. The city board and each board referred to in this section shall\nmake, in addition to such classification of its funds as it desires for\nits own use and information, such further classification of the funds\ncredited to it and of the disbursement thereof as the comptroller of the\ncity of New York shall require; provided that the classification of\nfunds by community boards shall be in accordance with the altered\nschedules developed pursuant to subdivision eight of section twenty-five\nhundred ninety-i of this article. The city board and community boards\nshall furnish such data in relation to such funds and their\ndisbursements as the comptroller of the city of New York shall require.\n * NB Effective June 30, 2026\n 7. The comptroller of the city of New York shall audit the accounts of\nthe city board and each community district, and, subject to laws\nsafeguarding the disclosure of individual information, make public the\nresults of such audits, at least once every four years; provided that\nthis section shall not limit the obligations of the school districts\npursuant to section twenty-one hundred sixteen-a of this chapter. The\ncomptroller of the city of New York shall be entitled to the cooperation\nof the commissioner of finance of the city of New York, the chief fiscal\ninvestigations officer and the internal auditors appointed pursuant to\nsubdivision thirty-seven of section twenty-five hundred ninety-h of this\narticle.\n * 8. Notwithstanding any provision of law to the contrary, the powers\nand duties conferred on a community district education council by this\nsection shall be exercised exclusively by the community superintendent\nemployed by such council.\n * NB Effective until June 30, 2026\n * 8. Notwithstanding any provision of law to the contrary, the powers\nand duties conferred on a community school board by this section shall\nbe exercised exclusively by the community superintendent employed by\nsuch board.\n * NB Effective June 30, 2026\n