Contact:
Lois Whitehead, Public Relations Manager
212-719-8405
lwhithead@nysscpa.org

ALBANY, N.Y. -- Citing the widening financial scandals at school districts on Long Island, State Comptroller Alan G. Hevesi, State Senate Education Committee Chair Stephen Saland, R/C-Poughkeepsie, State Assemblyman Thomas DiNapoli, D/I/WF-Great Neck, and a coalition of education associations and the New York State Society of Certified Public Accountants (NYSSCPA) proposed legislation Wednesday to increase financial oversight in school districts, according to a press release.

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Co-sponsors of the bill include Sen. Michael Balboni, R-East Williston, Sen. Ken LaValle, R-Port Jefferson, Assemblywoman Patricia Acampora, R-Mattituck, Assemblyman Thomas Alfano, R/I/WF/C-North Valley Stream,, Assemblywoman Patricia Eddington, D/WF-Patchogue,, Assemblyman Steve Englebright, D-East Setauket, Assemblywoman Ginny Fields, D-Oakdale, Assemblyman Robert Sweeney, D-Lindenhurst, Assemblyman Fred Thiele, R/I/WF-Sag Harbor, and Assemblyman Harvey Weisenberg, D-Long Beach.

“The fraud that occurred on Long Island represented a total failure of key safeguards to protect public monies. It is a wake up call for schools statewide that fraud can happen anywhere,” Hevesi said.

The five-point legislation includes the following measures:

• Requiring training for school board members on their financial oversight responsibilities, including six hours of training covering the basics of financial oversight, accountability and fiduciary responsibilities.
• Establishing an internal audit function within each school district.
• Creating audit committees in school districts.
• Mandating a competitive RFP process for selecting audit firms when contracts expire or at least every five years.
• Improving the effectiveness of annual external audits by requiring direct school board involvement and a formal response to issues raised, and providing better guidance on internal controls testing.

The legislation was developed with representatives from the Office of the State Comptroller, the New York State School Boards Association, the NYSSCPA, the New York State Council of School Superintendents and the New York State Association of School Business Officials. The group also consulted with representatives from the State Education Department.

“Comptroller Hevesi’s bill defines accountability for all parties who share the responsibility of ensuring that taxpayers’ dollars are channeled directly to the education of the state’s children,” NYSSCPA Executive Director Lou Grumet said.

In addition to the legislation, Hevesi’s office is currently auditing 21 school districts on Long Island. Hevesi has also asked the governor and Legislature for $5.4 million to hire 89 auditors to look at school districts around the state once every five years.

About the NYSSCPA

Representing 30,000 CPAs, the New York State Society of Certified Public Accountants (NYSSCPA) is the oldest and largest state accounting organization in the nation. Incorporated in 1897, the Society is a not-for-profit organization that seeks to establish and maintain high standards of integrity, honor, and character among certified public accountants. Its members are CPAs working in public practice, industry, government and education in a state that serves as the home of Wall Street and major financial institutions.

The New York State Society of CPAs is located at 3 Park Avenue, New York, NY 10016. To learn more about the Society call 800-633-6320 or visit the Society’s website at www.nysscpa.org.