Chapter 5 - COMPTROLLER

Section 91.

Section 91.

  §  91. Election; term; salary. The comptroller shall be elected by the
electors of the city at the same time and for the same terms as in  this
charter  prescribed  for  the  mayor.  A  comptroller  who resigns or is
removed from office prior to the completion of  a  full  term  shall  be
deemed  to  have  served a full term for purposes of section 1138 of the
charter. The salary of the comptroller shall be one hundred  eighty-five
thousand dollars a year.

Section 92.

Section 92.

  §  92.    Removal  from  office.    The  comptroller may be removed or
suspended in the same manner as provided in this charter with respect to
the mayor.

Section 93.

Section 93.

  §  93.  Powers and duties. 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.  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. The comptroller shall include copies  of  any  such
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 power and it shall be his 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.

Section 94.

Section 94.

  §  94.  Deputy  comptrollers  and other appointees. a. The comptroller
shall appoint  and  at  pleasure  remove  a  first,  and  second  deputy
comptroller.  The comptroller may appoint and at pleasure remove a third
deputy  comptroller who shall be a person qualified to advise and assist
the comptroller in all matters relating to borrowings and the investment
of funds. Except as provided in subdivision b of this section,  each  of
the  deputies  and  any officer or employee appointed by the comptroller
shall have such powers and duties as may be assigned to such  person  by
the  comptroller  by  instrument  in  writing filed with the city clerk.
Provided however that no more  than  five  such  additionally  appointed
officers  or  employees shall serve simultaneously. The city clerk shall
notify the council of the filing or revocation of each such appointment.
  b. Any deputy comptroller or any officer or employee appointed by  the
comptroller  may  act  in place of the comptroller on any board, body or
committee of which the comptroller is a member whenever the  comptroller
shall  so authorize in writing and such authorization is filed with such
board, body or committee and with the city clerk.
  c. Any vacancy in the office of comptroller shall be filled by popular
election, in the manner set forth in this subdivision. In the event of a
vacancy in the office of  comptroller  until  an  interim  or  permanent
successor  is  first elected, or whenever by reason of sickness, absence
from the city or  suspension  from  office,  the  comptroller  shall  be
prevented  from  attending  to  the  duties  of the office, or while the
comptroller is acting as mayor, the first deputy comptroller or  in  the
case  of  his or her illness or absence the second deputy comptroller or
in the  case  of  his  or  her  illness  or  absence  the  third  deputy
comptroller shall act as comptroller.
  1.  Within  three days of the occurrence of a vacancy in the office of
the comptroller, the mayor shall proclaim the date for the  election  or
elections   required   by  this  subdivision,  provide  notice  of  such
proclamation to the city clerk and the board of  elections  and  publish
notice  thereof  in  the City Record. After the proclamation of the date
for an election to be held pursuant to paragraphs four or five  of  this
subdivision,  the  city clerk shall publish notice thereof not less than
twice in each week preceding the date of  such  election  in  newspapers
distributed  within  the  city,  and  the  board of elections shall mail
notice of such election to all registered voters within the city.
  2. If a vacancy occurs during the first three years  of  the  term,  a
general  election to fill the vacancy for the remainder of the unexpired
term shall be held in the year in which the vacancy occurs,  unless  the
vacancy  occurs  after the last day on which an occurring vacancy may be
filled at the general election in that same year with party  nominations
of  candidates  for  such  election being made at a primary election, as
provided in section 6-116 of the election law. If such a vacancy  occurs
in any year after such last day, it shall be filled for the remainder of
the  unexpired  term  at  the  general  election  in  the following year
provided, however, that no general election to fill a vacancy  shall  be
held  in the last year of the term, except as provided in paragraph nine
of this subdivision. Party  nominations  of  candidates  for  a  general
election to fill a vacancy for the remainder of the unexpired term shall
be  made  at a primary election, except as provided in paragraph five of
this subdivision.
  3. If a special or general election to fill the vacancy on an  interim
basis  has  not  been  previously held pursuant to paragraphs four, six,
seven and eight of this subdivision, the  person  elected  to  fill  the
vacancy  for  the  remainder of the unexpired term at a general election
shall take office immediately upon qualification and shall  serve  until
the  term  expires. If a special or general election to fill the vacancy

on an interim basis has been previously held, the person elected to fill
the vacancy for the  remainder  of  the  unexpired  term  at  a  general
election  shall  take office on January first of the year following such
general election and shall serve until the term expires.
  4. If a vacancy occurs during the first three years of the term and on
or  before  the  last  day  in  the  third  year of the term on which an
occurring vacancy may be filled for the remainder of the unexpired  term
at  a  general  election  with  party nominations of candidates for such
election being made at a primary election, as provided in section  6-116
of  the  election law, a special or general election to fill the vacancy
on an interim basis shall be held, unless the vacancy occurs  less  than
ninety  days before the next primary election at which party nominations
for a general election to fill the vacancy may be made and on or  before
the  last  day  on  which  an  occurring  vacancy  may be filled for the
remainder of the unexpired term at the general election in the same year
in which the vacancy occurs with party  nominations  of  candidates  for
such  election  being made at a primary election, as provided in section
6-116 of the election law.
  5. If a vacancy occurs after the last day in the  third  year  of  the
term  on  which  an occurring vacancy may be filled for the remainder of
the unexpired term at  a  general  election  in  each  year  with  party
nominations  of  candidates  for  such  election being made at a primary
election, as provided in section 6-116 of the election law, but not less
than ninety days before the date of the primary election in  the  fourth
year  of  such  term, a special or general election to fill such vacancy
for the remainder of the unexpired term shall be held.
  6.  Elections  held  pursuant  to  paragraph  four  or  five  of  this
subdivision  shall  be  scheduled  in  the  following  manner: a special
election to fill the vacancy shall be held on the first Tuesday at least
forty-five days after the occurrence of the vacancy, provided  that  the
mayor,   in   the   proclamation  required  by  paragraph  one  of  this
subdivision, may schedule such election for another day no more than ten
days after such  Tuesday  and  not  less  than  forty  days  after  such
proclamation if the mayor determines that such rescheduling is necessary
to facilitate maximum voter participation; except that
  (a)  if  the vacancy occurs before September twentieth in any year and
the first Tuesday at least forty-five days after the occurrence  of  the
vacancy  is  less  than ninety days before a regularly scheduled general
election or between a primary and a general election, the vacancy  shall
be filled at such general election; and
  (b)  if  the vacancy occurs before September twentieth in any year and
the first Tuesday at least forty-five days after the occurrence  of  the
vacancy  is  after  a  regularly scheduled general election, the vacancy
shall be filled at such general election; and
  (c) if the vacancy occurs on or after September twentieth in any  year
and  the  first Tuesday at least forty-five days after the occurrence of
the vacancy is after, but less  than  thirty  days  after,  a  regularly
scheduled  general  election,  the  vacancy shall be filled at a special
election to be held on the first Tuesday in December in such year.
  7. All nominations for elections to fill vacancies  held  pursuant  to
paragraphs  four  and  five  of this subdivision shall be by independent
nominating petition. A signature on an independent  nominating  petition
made earlier than the date of the proclamation required by paragraph one
of this subdivision shall not be counted.
  8. A person elected to fill a vacancy in the office of the comptroller
at an election held pursuant to paragraph four of this subdivision shall
take  office  immediately  upon  qualification  and serve until December
thirty-first of the  year  in  which  the  vacancy  is  filled  for  the

remainder  of  the  unexpired  term  pursuant  to  paragraph two of this
subdivision. A person elected to fill a vacancy in  the  office  of  the
comptroller  at  an  election  held  pursuant  to paragraph five of this
subdivision  shall  take office immediately upon qualification and serve
until the term expires.
  9. If a vacancy occurs less than ninety days before the  date  of  the
primary election in the last year of the term, the person elected at the
general  election  in  such year for the next succeeding term shall take
office immediately upon qualification  and  fill  the  vacancy  for  the
remainder of the unexpired term.

Section 95.

Section 95.

  §  95.  Annual audit. a. The city, in accordance with subdivision b of
this section and section ninety-seven of this chapter, shall  take  such
action  as  may  be  necessary to enable an independent certified public
accounting firm or consortium of such firms to perform an  annual  audit
in  accordance with generally accepted auditing standards and to furnish
to the city, in accordance with  subdivision  b  of  this  section,  the
report on such audit prepared by such firm or consortium of firms, which
report  shall  include  an  opinion  as  to whether the city's financial
statements have been prepared  in  accordance  with  generally  accepted
accounting  principles  and  shall  state  whether  the  audit  of  such
financial statements was made  in  accordance  with  generally  accepted
auditing  standards.  The  city  shall make available for inspection and
copying all books, records, work papers and other data and  material  as
required  by such auditors, and officers and employees of the city shall
be made available to, and shall cooperate with, such auditors so  as  to
permit  such  annual  audit to be completed and the report issued within
four months after the close of the city's fiscal year.
  b. The annual audit described in subdivision a of this  section  shall
be made by a firm or firms of certified public accountants, as set forth
in  such  subdivision,  selected  by  the audit committee. Copies of the
annual audit shall be submitted  to  the  mayor,  the  comptroller,  the
council  and  the  state  comptroller and shall be published in the City
Record. No audit engagement contract  pursuant  to  this  section  shall
exceed four years.

Section 96.

Section 96.

  § 96. Actuarial audit. The comptroller, with the approval of the audit
committee,  biennially shall select an independent actuary to review and
comment upon the  financial  soundness  and  probity  of  the  actuarial
assumptions  employed by the city to calculate contributions to the city
pension funds. The report of the actuary shall be published in the  City
Record. No actuary may be selected more than twice consecutively.

Section 97.

Section 97.

  §  97.  Audit  committee.  a.  There shall be an audit committee which
shall consist of the mayor, the comptroller, the  public  advocate,  and
four  private  members  appointed  by  the  mayor,  two of whom shall be
appointed upon the recommendation of the comptroller. The members of the
committee shall elect a private member  as  chair  for  an  annual  term
commencing on the first day of March.
  b.  The  private  members of the audit committee shall include (i) two
persons with expertise in finance, and (ii) two persons  with  expertise
in  accounting.  Two  private  members,  one  of  whom  shall  have been
recommended  by  the  comptroller,  shall  serve  for   two-year   terms
commencing  on  the first day of March, nineteen hundred ninety; and two
private members,  one  of  whom  shall  have  been  recommended  by  the
comptroller,  shall serve for two-year terms commencing on the first day
of March, nineteen hundred ninety-one. Private members shall continue in
office until their successors have been appointed and qualified. Private
members shall serve without salary but shall be reimbursed for  expenses
actually  and necessarily incurred in the performance of official duties
and shall also receive a per diem allowance when rendering  services  to
the committee.
  c. The audit committee shall:
  (1)  approve  or disapprove the comptroller's suspension or withdrawal
of authority delegated to an agency pursuant to subdivision h of section
ninety-three;
  (2) select a firm or firms of certified public accountants to  perform
the annual audit of the city's accounts required by section ninety-five;
  (3)  assist  in  the determination of areas of inquiry for, review the
progress of, and evaluate the results of, the annual audit  required  by
section ninety-five;
  (4)  approve  the  selection of the independent actuary to perform the
actuarial audit required by section ninety-six; and
  (5) perform such other functions as  are  agreed  to  by  all  of  the
members.