Section 35. Filing of report of examination and notice thereof

1. A report
  of such examination shall be made and shall be filed in  the  office  of
  the  state  comptroller  and in the office of the clerk of the municipal
  corporation,  industrial  development  agency,   district,   agency   or
  activity, or with the secretary if there is no clerk. An additional copy
  thereof shall be filed with the chief fiscal officer, except that in the
  case  of  a  school district, such additional copy shall be filed in the
  office of the chairman of the board of trustees, the  president  of  the
  board  of  education  or  the  sole trustee, as the case may be. When so
  filed, each such report and copy thereof shall be a public  record  open
  to inspection by any interested person.
    2.  (a)  Within  ten  days after the filing of a report of examination
  performed by the office  of  the  state  comptroller,  a  report  of  an
  external  audit  performed  by  an  independent public accountant or any
  management letter prepared in conjunction with such  an  external  audit
  with  the  clerk  of  the  municipal corporation, industrial development
  agency, district, agency or activity, or with the secretary if there  is
  no  clerk,  he  shall  give  public  notice thereof in substantially the
  following form: "Notice is hereby given that the fiscal affairs of (name
  of  municipal  corporation,  industrial  development  agency,  district,
  agency  or  activity)  for  the  period  beginning on............... and
  ending on..............., have been examined by (the office of the state
  comptroller or an independent public accountant), and that  the  (report
  of  examination  performed  by  the  office  of the state comptroller or
  report of, or  management  letter  prepared  in  conjunction  with,  the
  external  audit  by the independent public accountant) has been filed in
  my office where it is available as a public record for inspection by all
  interested persons. Pursuant  to  section  thirty-five  of  the  general
  municipal  law,  the  governing board of (name of municipal corporation,
  district, agency or activity) may, in its discretion, prepare a  written
  response  to  the  (report of examination performed by the office of the
  state comptroller or the report of external audit or  management  letter
  by  independent  public  accountant)  and  file  any such response in my
  office as a public record for inspection by all interested  persons  not
  later than (last date on which response may be filed)."
    (b)  Except  as  otherwise  provided for a common school district, the
  clerk, or secretary if there is no clerk, shall cause such notice to  be
  published  at  least  once  in the official newspaper, or if there be no
  official newspaper, in a newspaper having  general  circulation  in  the
  municipal  corporation,  industrial development agency, district or area
  served by the agency or activity.   If  there  be  no  newspaper  having
  general  circulation,  the clerk, or the secretary if there is no clerk,
  shall post such  notice  conspicuously  in  ten  public  places  in  the
  municipal  corporation,  industrial development agency, district or area
  served.  In a common school district which maintains a home school,  the
  clerk shall post such notice on the front door of the school house. In a
  common  school district which does not maintain a home school, the clerk
  shall post such notice conspicuously in at least five public  places  in
  the district.
    (c)  The  clerk of every municipal corporation, industrial development
  agency, district, agency and activity, or the secretary if there  is  no
  clerk,  shall  file in his office proof of the publication or posting of
  notices pursuant to this section.  The proof so filed shall be  in  such
  form as may be prescribed by the state comptroller.
    (d)  In each school district subject to the jurisdiction of a district
  superintendent, under  the  provisions  of  article  forty-five  of  the
  education  law,  such  district  superintendent shall ascertain that the

  public notice required by this subdivision has been published or posted,
  as the case may be.
    3.  The  clerk,  or  secretary if there is no clerk, shall present the
  report of the  examination  to  the  governing  body  of  the  municipal
  corporation, industrial development agency, district, agency or activity
  for its consideration at the first meeting thereof held after the filing
  of the report with the clerk or secretary.
    4.  (a) The governing board or other board, officer or employee of the
  municipal corporation, industrial development agency,  district,  agency
  or  activity  receiving  a  report  of an external audit performed by an
  independent  public  accountant  or  a  management  letter  prepared  in
  conjunction  with such an audit shall file in the office of the clerk of
  the municipal  corporation,  industrial  development  agency,  district,
  agency  or  activity,  or  with  the secretary if there is no clerk, and
  shall furnish to the comptroller, a copy of the report or letter  within
  ten  days  after receipt. If the report or letter is not received by the
  governing board, a copy shall be provided to the governing board  within
  three  days  after  receipt  by  any  other  board,  officer or employee
  receiving the same.
    (b) (1) Not later than ninety days after presentation to the governing
  board of a report of examination performed by the office  of  the  state
  comptroller,  or  receipt  by  the  governing  board of any report of an
  external audit performed by an  independent  public  accountant  or  any
  management letter in conjunction with such an audit, the governing board
  may,  in  its  discretion,  provide  to the comptroller, and file in the
  office of the clerk, or with the secretary if there is no clerk, of  the
  municipal  corporation,  industrial development agency, district, agency
  or activity, a written response to the findings and recommendations,  if
  any,  in  the  report  or letter. In the case of municipal corporations,
  industrial development agency, districts, agencies or activities subject
  to examination by the commissioner of education,  any  written  response
  shall also be provided to such commissioner.
    (2)  A  written response prepared pursuant to subparagraph one of this
  paragraph shall be in such form as may be prescribed by the  comptroller
  and  shall  include,  with  respect to each finding or recommendation, a
  statement of the corrective actions taken or proposed to be taken, or if
  corrective action is not  taken  or  proposed,  an  explanation  of  the
  reasons  therefor.  Any  such  written  response  shall  also  include a
  statement on the status of  corrective  actions  taken  on  findings  or
  recommendations  contained  in  any  previous  report of examination, or
  report of an external  audit,  or  any  management  letter  prepared  in
  conjunction  therewith,  by an independent public accountant for which a
  written response  was  required.  All  officers  and  employees  of  the
  municipal  corporation,  industrial development agency, district, agency
  or activity shall fully  cooperate  with  the  governing  board  in  the
  preparation of the response by the governing board.
    (c)  The  provisions  of  this subdivision shall not apply to any city
  having a population of one million or more.