Improving the Effectiveness of Your Claims Auditing Process

Local Government Management Guide

Appendix A – Auditing Authority – Legal References

The body or official responsible for auditing claims will vary depending on the type of locality. Generally, the governing board is responsible for auditing claims or creating a separate position having that responsibility. The following chart describes who is generally responsible for auditing claims in each type of locality and what options, if any, are available for establishing the claims auditing position.

Type of Locality Designated Claims Auditing Body Other Options
School District Board of Education / Trustees. Education Law Sections 1604, 1724, 1804 (1), 1903(1), 2524, 2580 Board may, among other options, create the office of claims auditor. Education Law Sections 1604(35), 1709(20-a), 1804(1), 1903(1), 2526 and 2554(2-a); see also 8 NYCRR Section170.12(c)
BOCES Board of Cooperative Educational Services. Education Law Section 1950 Board may create the office of claims auditor. Education Law Section 1950(4)(k)
County Board of Supervisors or Legislators. County Law Section 369 Office of county comptroller or county auditor. County Law Sections 575, 577 and 600
Town or Special District  Town Board, or for improvement districts with separately elected commissioners, the Board of Commissioners. Town Law Sections 118, 215(1-b) Town Board may create the office of town comptroller. Town Law Sections 20(3) (b), 118, 119; Municipal Home Rule Law Sections 10, 23.
Village Board of Trustees. Village Law Section 5-524 Board may create the office of village auditor or authorize a separate board of commissioners to audit claims incurred by that board and payable out of funds within the separate board’s jurisdiction. Village Law Sections 3-301(2)(c), 5-524
Fire District Board of Fire Commissioners. Town Law Section 176(4-a) No authority to create a claims auditing position.
City May be the governing board, if provided for in the city charter City comptroller (for cities governed by the Second Class Cities Law, see Second Class Cities Law Section 64); otherwise, depends on city charter provisions
  • For public libraries, the Library Board of Trustees, pursuant to Education Law Section 259(1)
  • For special district public libraries, the Library Board of Trustees or such other entity as may be designated in the special act creating the special district public library
  • For a public library Board of Trustees, the function of auditing and approving claims in libraries may not be delegated
  • For the special district public library, refer to the enabling legislation