a. The comptroller from time to time in his or her discretion may, and whenever required by law or requested by the mayor or the council, shall advise the mayor and the council on the financial condition of the city or any phase thereof and make such recommendations, comments and criticisms in regard to the operations, fiscal policies and financial transactions of the city as he or she may deem advisable in the public interest.
b. The comptroller shall have power to audit and investigate all matters relating to or affecting the finances of the city, including without limitation the performance of contracts and the receipt and expenditure of city funds, and for such purpose shall have power to require the attendance and examine and take the testimony under oath of such persons as the comptroller may deem necessary. The comptroller shall conduct all audits of entities under contract with the city as expeditiously as possible and in no case shall initiate an audit later than two years after the expiration of a contract term unless the comptroller determines in writing that: (1) such audit is initiated in connection with litigation brought by or against the city, (2) it was not practicable to initiate an audit within such two year period, or (3) the initiation of the audit after the two year period is appropriate in light of information discovered in an audit of another contract of the same contractor. Such written determination shall be filed with the mayor, council and public advocate.
c. The comptroller shall have power to audit all agencies, as defined in subdivision two of section eleven hundred fifty, and all agencies, the majority of whose members are appointed by city officials. The comptroller shall be entitled to obtain access to agency records required by law to be kept confidential, other than records which are protected by the privileges for attorney-client communications, attorney work products, or material prepared for litigation, upon a representation by the comptroller that necessary and appropriate steps will be taken to protect the confidentiality of such records. The comptroller shall establish a regular auditing cycle to ensure that one or more of the programs or activities of each city agency, or one or more aspects of each agency's operations, is audited at least once every four years, except that for purposes of such regular auditing cycle, the comptroller may treat all community boards as a single combined agency, and all public administrators’ offices as a single combined agency, so that one or more of the programs or activities, or aspects of operations in each such combined agency is audited at least once every four years. The audits conducted by the comptroller shall comply with generally accepted government auditing standards. In accordance with such standards, and before any draft or final audit or audit report, or portion thereof, may be made public, the comptroller shall send a copy of the draft audit or audit report to the head of the audited agency and provide the agency, in writing, with a reasonable deadline for its review and response. Where the comptroller treats multiple community boards or public administrators as a single combined agency as authorized by this subdivision, the comptroller shall send a copy of the draft audit or audit report to each community board or public administrator that is the subject of the audit and provide each such board or public administrator, in writing, with a reasonable deadline for its review and response. The comptroller shall include copies of any agency response in any draft or final audit or audit report, or portion thereof, which is made public. The comptroller shall send copies of all final audits and audit reports to the council, the mayor, and the audit committee.
d. The comptroller shall (1) audit financial transactions of the city, including vouchers, warrants, and payrolls; (2) audit all official accounts and the accrual and collection annually of all revenues and receipts; and (3) audit the expenditure of city funds by any public or private agency that receives such funds from the city.
e. The comptroller shall audit the operations and programs of city agencies to determine whether funds are being expended or utilized efficiently and economically and whether the desired goals, results or benefits of agency programs are being achieved. The comptroller shall investigate the processing of vouchers and the payment of bills by city agencies and shall audit agency compliance with applicable procedures in procuring goods, services and construction. The comptroller shall also undertake studies, including cost benefit analyses, of: (i) purchases of goods, services, and construction by agencies of government that use city funds for such purposes and (ii) the adoption and use of new technology by city agencies to promote their economy and efficiency, and periodically report the findings and recommendations of such studies to the mayor, the council and the public.
f. Not later than the first day of March of each year, the comptroller shall deliver to the mayor and council a report describing all major audits of city agencies conducted by the comptroller during the previous fiscal year; the corrective actions recommended in such audits; the corrective actions which have been implemented to the extent such information is known to the comptroller on the basis of agency reports, comptroller audits, or otherwise; and the comptroller's recommendations, if any, for additional corrective actions.
g. The comptroller shall have the power and duty to audit all vouchers before payment for availability of funds and prepare warrants. No warrant shall be prepared by the comptroller unless sufficient appropriations are available to cover the payments involved. No agency shall expend or commit any funds otherwise than for the program and purposes for which the funds have been appropriated and the comptroller shall conduct audits and take such other action as is required to assure compliance with this provision.
h. Except as provided in subdivision g, the agencies shall prepare and audit vouchers before payment, prepare and audit payrolls, receive and inspect goods and forward vouchers to the comptroller for payment. The comptroller shall prescribe methods, with which all agencies shall comply, for preparing and auditing vouchers before payment, preparing payrolls, and recording, reporting and accounting in the several agencies and shall conduct reviews to assure compliance. The comptroller may suspend or withdraw the authority delegated to an agency pursuant to this subdivision (1) upon a finding of abuse of such authority or on a determination that the agency lacks adequate internal controls to exercise such authority properly and (2) upon the approval of the audit committee after the agency has had an opportunity to be heard on this matter.
i. The comptroller shall have the power to settle and adjust all claims in favor of or against the city in such manner as shall be prescribed by law and for that purpose may administer oaths, except that, with regard to excise and non-property taxes, such power shall be vested in the commissioner of finance. The comptroller shall not revise the terms of a contract or agreement with the city after its execution. The city may include in construction contracts or agreements for capital projects provisions that authorize the comptroller to submit disputes arising under any such contract or agreement to impartial arbitration.
j. The comptroller shall administer and manage the several sinking funds of the city and all other trust funds held by the city, and provide for the receipt and safekeeping of all moneys in such funds, except as provided in paragraph b of subdivision three of section fifteen hundred four of this charter, and in such administration the comptroller shall be deemed to be acting in a fiduciary capacity.
k. The comptroller shall keep the accounts of the city and shall at least once in each month render to each agency a summary statement of so much thereof as relates to such agency.
l. Within four months after the close of each fiscal year, the comptroller shall publish a statement for such year, including a full and detailed statement of the revenues and expenditures of the city and the surplus at the end of the fiscal year, including the average daily collected deposits in bank accounts of the city, the investment performance of city pension and other investment funds, an itemized statement of all taxes due and uncollected at the close of the fiscal year, the reserve for estimated uncollectible taxes, and the uncollected parking violation fines receivable, an itemized statement of the condition of the sinking funds, and any other assessable improvement funds, and of the tax appropriation and general fund stabilization reserve fund as at the close of the fiscal year, the different sources of city revenue, including itemization of receivables due from state or federal sources by program and fiscal year, and the amount received from each, the several appropriations made for the fiscal year, the objects for which they were made and the amount of expenditures made under each, the money borrowed on the credit of the city, the amount of each loan, the authority under which it was made and the terms on which it was obtained, and such other information in regard to such fiscal year as may be determined by the comptroller or by law.
m. The comptroller shall establish for his or her office and for all city agencies a uniform system of accounting and reporting based on generally accepted accounting principles.
1. Such uniform system of accounts shall provide:
(a) control accounts in the office of the comptroller that are consistent with budgeted units of appropriation and that are adequate to record and control spending by the agencies and to prevent agencies from exceeding appropriations;
(b) detailed accounts in the agencies for the purposes of cost accounting, rate of expenditure information and other management information data; and
(c) geographic accounts for the reporting of expenditures for local service districts of agencies within community districts and boroughs.
2. The comptroller shall prescribe procedures for accounting and reporting for all agencies, and review agency accounts and systems to assure compliance with this chapter and with the methods, standards and procedures prescribed by the comptroller for the agencies.
n. The comptroller shall prescribe systems of accounting for city agencies whose revenues arising out of the use of the facilities and services supplied by such agencies constitute fifty per centum or more of the appropriations provided for the operation of such agencies, which systems of accounting shall conform so far as practicable to standard public utility accounting practices. The comptroller shall publish in the comptroller's annual report the financial statements for such city agencies.
o. Notwithstanding the provisions of any general, special or local law or this charter or any contract heretofore or hereafter made or awarded by the city of New York or by any agency, department or authority acting on its behalf, the comptroller may, at his or her discretion, turn over the physical custody and safekeeping of bonds, notes, obligations or other evidences of indebtedness which have been or will be deposited with the comptroller as collateral security as required by law or contract to a custodian who may be (a) any bank or trust company incorporated in the state, or (b) any national bank located in the state, or (c) any private banker duly authorized by the superintendent of banks of this state to engage in business here. The comptroller may enter into a contract with such custodian under terms and conditions which the comptroller may require. Each depositor of collateral security shall bear a proportionate share of the cost of such custodial safekeeping which shall be paid to the city of New York.
p. No contract or agreement executed pursuant to this charter or other law shall be implemented until (1) a copy has been filed with the comptroller and (2) the comptroller has registered it in accordance with sections three hundred twenty-eight and three hundred seventy-five of the charter.
q. The council shall periodically review the requirements contained in the charter for studies and reports by the comptroller and may by local law revise such requirements as it deems appropriate. At such times as the mayor or the council shall request, the comptroller shall submit to them such information as they may request. The comptroller, upon request, shall assist the council in the conduct of any of its investigations or studies of the fiscal or economic affairs of the city or of any agency. The comptroller shall provide reports to the council upon request and shall testify before the council or a committee thereof.
r. The comptroller shall make a complete transcript of each public hearing conducted by the office available for public inspection free of charge within sixty days after such hearing. The comptroller shall also provide a copy of any requested pages of such transcript at a reasonable fee to cover copying and, if relevant, mailing costs.
(Am. L.L. 2024/080, 7/20/2024, eff. 9/3/2024)