Section 2580. Funds; custody and disbursement

1. Public moneys apportioned
  to a city by the  state  and  all  funds  raised  or  collected  by  the
  authorities  in a city for school purposes or to be used by the board of
  education for any purpose authorized in this chapter, or any other funds
  belonging to a city and received from any source whatsoever for  similar
  purposes,  shall  be  paid  into  the treasury of such city and shall be
  credited to the board of education. The  funds  so  received  into  such
  treasury  shall  be  kept  separate  and  distinct  from any other funds
  received into the said treasury. The officer having the  charge  thereof
  shall  give such additional security for the safe custody thereof as the
  corporate authorities of such city shall require.
    2. Such funds  shall  be  disbursed  by  authority  of  the  board  of
  education  upon  written  orders  drawn  on  the city treasurer or other
  fiscal officer  of  the  city.  Such  orders  shall  be  signed  by  the
  superintendent of schools and the secretary of the board of education or
  such  other  officers  as  the  board may authorize. If a claims auditor
  shall have been appointed, orders shall be signed by the claims auditor;
  provided,  however,  that  the  board  may  require,  in  addition,  the
  signature  of  such  other  officer  or officers as it may by resolution
  direct. Orders shall be numbered consecutively  and  shall  specify  the
  purpose  for  which they are drawn and the person or corporation to whom
  they are payable.
    3. Fixed salaries, principal  of  and  interest  on  indebtedness  and
  amounts  becoming  due  upon  lawful contracts for periods exceeding one
  year may be disbursed without prior audit of the board of education.  By
  resolution  duly  adopted,  the  board  may  determine  to  enter into a
  contract to provide for the deposit  of  the  periodic  payroll  of  the
  school  district  in  a  bank  or  trust  company for disbursal by it in
  accordance with provisions of section ninety-six-b of the banking law.
    4. It shall be unlawful for a city treasurer or other  officer  having
  the custody of such city funds to permit their use for any purpose other
  than that for which they are lawfully authorized; they shall be paid out
  only on audit of the board of education or as otherwise provided herein.
  Payments  from  such  funds  shall  be made only by checks signed by the
  treasurer or other custodian of such moneys and payable to the person or
  persons entitled thereto and countersigned either by the comptroller, or
  in a city having no comptroller, by an officer designated by the officer
  or body having the general control of  the  financial  affairs  of  such
  city.  The  board  of  education of such city shall make, in addition to
  such classification of its funds and accounts as it desires for its  own
  use  and information, such further classification of the funds under its
  management  and  control  and  of  the  disbursements  thereof  as   the
  comptroller  of  the  city,  or  the  officer or body having the general
  control of the financial affairs of such city, shall require,  and  such
  board  shall  furnish  such  data  in  relation  to such funds and their
  disbursements as the comptroller or such other financial officer or body
  of the city shall require.