Impact of late filed Independent Audits on State Aid Payments

• Pursuant to Education Law Section 2116-a, the deadline for submission of the independent audit to SED is October 15th for school districts other than Rochester, Syracuse, Buffalo, Yonkers and New York City. For the large city school districts, the deadline is January 1st. As these deadlines are statutory, SED is not able to effect an extension.
• Due to a statutory 30 day "grace period," the November State Aid payment is not withheld if the audit is not received by October 15th. No State Aid is withheld due to a late-filed independent audit until after November 14th, (assuming all other required State Aid claim forms have been received).
• The November 14th State Aid payment is processed before November 14th; therefore, the November payment is not withheld from districts due a November State aid payment (assuming all other required State Aid claim forms have been received).
• The December State Aid payment is the first payment that potentially will be withheld if the independent audit is not received by SED by November 14th.
• Barring unforeseen circumstances beyond SED control, the December 15th State Aid payment is processed approximately during the fourth week in November. Therefore, independent audits received in the Office of Audit Services during the fourth week in November are likely, though not guaranteed, to be processed in time to avoid having the December payment withheld (assuming all other required State Aid claim forms have been received).
• In general, payment files are processed three weeks prior to the date districts are to receive a payment. Districts submitting their independent audit report late or very late should be aware of this lag in determining whether their , December, January, February, etc. State Aid payments might be withheld.
• Districts should submit their completed independent audit to the Office of Audit Services as soon as it is complete, even if the Board of Education has not approved the audit. Attach a note to the audit when submitted indicating that documentation of Board approval is forthcoming, and send the approval resolution to the Office of Audit Services as soon as possible after Board approval.
• Note: STAR  and Lottery VLT grant payments will not be withheld due to a late-filed independent audit.

The Independent Audit Report should be sent to the following address:

New York State Education Department
Office of Audit Services
89 Washington Avenue, Room 524 EB
Albany, NY 12234

All questions regarding the content and submission of the independent audit should be directed to John Cushin in the Office of Audit Services at the
State Education Department:
Phone: 518-473-4516
e-mail: FSandA133@mail.nysed.gov.