New York (State). Dept. of Audit and Control.

These records were generated as a result of the duty of the Comptroller to maintain clerical accounting records for the state.

Appraisal of damages was first carried out by a Canal Commissioner and two canal appraisers pursuant to Laws of 1817, Chapter 262; the Revised Statutes of 1829, Part I, Chapter 9, Title 9, Article 3; and Laws of 1836, Chapter 287. The Canal Appraisers began making annual reports in 1849 according to Laws of 1849, Chapter 352. The permanent Board of Appraisers was established by Laws of 1857, Chapter 538, and its procedure clarified by Laws of 1870, Chapter 321. The Board of Canal Appraisers continued until it was replaced by the Board of Claims, set up by Laws of 1883, Chap. 205.

The Board of Claims was abolished and succeeded by the Court of Claims according to Laws of 1897, Chapter 36. Though called a court, the Court of Claims was really a quasi-judicial auditing board. In 1911 (Chapter 856) the Court of Claims was renamed the Board of Claims. Over the next ten years it was known as a board, a court, or a bureau, but its functions remained the same. The Court of Claims was officially reestablished by Laws of 1922, Chapter 922, and continued by Laws of 1939, Chapter 860.

Appeals from awards of damages were taken to the Canal Board pursuant to Laws of 1829, Chapter 368, and Laws of 1868, Chapter 579. the Revised Statutes of 1829, Part 1, Chapter 9, Article 3, Section 55, Chapter 9, Title 9, Article 3, Section 55, also permitted appeals from awards of the Canal Appraisers directly to the Supreme Court. Laws of 1840, Chapter 288, permitted Canal Appraisers' awards in certain water rights cases to be reviewed by the Supreme Court in an action brought by the Attorney General at the request of the Canal Commissioners or the Commissioners of the Canal Fund. Appeals from the Court of Claims are taken to the Appellate Division of the Supreme Court.

All damage claims and supporting documentation filed with the Canal Appraisers, the Board of Claims, and the Court of Claims prior to 1911, along with the original awards, are believed to have been destroyed in the Capitol fire. Copies of damage awards for appropriated lands were recorded by the clerks of the counties where the land lay, pursuant to the Revised Statutes of 1829, Part I, Chapter 9, Article 3, Section 51, as amended and readopted in later statutes.

In 1950 a survey was conducted of inactive records filed with the Department of Audit and Control. As a result, 5 per cent was culled as a sample to be preserved (separated from other records about 200 times as voluminous). From 1951 to 1954 the records were disposed of under provisions of state law. Historical records in the sample were inadvertently taken for disposal as part of one of these dispositions. The president of the Onondaga Historical Association, Richard Wright, notified state historian Albert B. Corey when records from the sample came to his attention in Syracuse. They were traced to Mont Rolland Paper Company in Quebec, Canada. Corey organized a search team, and about one-third of all the records set aside for preservation were recovered. The incident sparked dialogue about creating an official state records office to safeguard historical records.

The Department originated in 1625 when Dutch colonial authorities appointed a schout-fiscal to examine the accounts of New Amsterdam. In 1658, a Board of Audit consisting of a director general, receiver general, and a council member assumed auditing responsibilities. After the English took control of the colony in 1664, the auditing function was carried out by a royally appointed auditor general. Following its establishment in 1683, the colonial assembly gradually asserted greater fiscal control and fiscal responsibility continued to be divided between royal officials and the elected assembly until the American Revolution.

During the early days of the Revolution, the Provincial Congress selected auditors from its own membership and in 1776 appointed an auditor general. The first state constitution in 1777 created the Office of State Treasurer to collect and disburse revenues as authorized by the legislature, but did not mention an auditor. However, an auditor was appointed through a clause providing for the appointment of ?other officers.?

In 1782 (Chap. 21, 5th Session), the legislature established the office of auditor to assume responsibility for settling the State's accounts. In 1787, the auditor assumed what had been the treasurer?s duties relating to collection and commutation of quit rents. In 1788, the auditor was directed to settle accounts with certain other states, as well as the federal government. To avoid conflicts between the auditor and the treasurer, the legislature established the Office of Comptroller in 1797 (Chapter 21). The comptroller assumed all duties of the auditor and certain powers of the treasurer, including the power to draw up payment warrants, invest the State?s funds, and borrow money on the State?s credit. Originally appointed by the Council of Appointment, the comptroller was elected by the legislature under the 1821 State constitution. Under the 1846 and all subsequent constitutions, the comptroller has been chosen in the general election.

The comptroller was designated a member of the Board of Commissioners of the Land Office in 1801 and was directed to sell lands for payment of delinquent State taxes. When construction of the canal system began in 1817, the comptroller was appointed to the Board of Commissioners of the Canal Fund and later to the Canal Board. The commissioners of the Canal Fund were responsible for managing the debts and funds of the State's canals. The Canal Board, comprised of the commissioners of the Canal Fund and the canal commissioners (responsible for canal construction and repair), exercised overall supervision over the State's canal system. The comptroller remained a member of the Board of Commissioners of the Land Office until it was reorganized in 1926, and of the Canal Boards until they were abolished in 1926.

The comptroller examined the financial affairs of banks from 1843 until the creation of the Banking Department in 1851. From 1849 until the creation of the Insurance Department a decade later, the comptroller regulated the organization and operation of insurance companies. Beginning in 1865, State-supported hospitals and charitable institutions were required to submit financial reports to the comptroller and in 1873 the comptroller was empowered to examine the financial affairs of prisons and various other State institutions. In 1880 the comptroller was authorized to initiate a system of collecting taxes on corporations. The comptroller assumed the duties of the former office of canal auditor in 1883. Beginning in 1905, municipal divisions of the State were required to adopt uniform fiscal reporting systems and to file annual reports subject to examination by the Comptroller's Office.

Commencing in 1910 (Chapter 149), State agencies were required annually to submit a proposed expenditure plan to the comptroller, who then forwarded recommendations to the Assembly Ways and Means and the Senate Finance committees. This was the forerunner of New York State's executive budget process. In 1913 the comptroller's auditing powers were strengthened by legislation (Chapter 342) requiring agencies to adopt a uniform system of accounting and fiscal reporting; to verify purchases and services; and to obtain the comptroller's prior approval of all contracts over one thousand dollars. In 1920 (Chapter 741), a State employees retirement system was established under the administrative control of the comptroller.

The 1925 constitutional amendment reorganizing state government placed the elected comptroller at the head of a new Department of Audit and Control and assigned the office the duties of auditing all vouchers before payment, auditing the accrual and collection of all revenues and receipts, and prescribing accounting methods necessary to perform these activities. The 1926 law establishing the Department of Audit and Control (Chapter 614) transferred responsibility for the canal debt sinking fund from the commissioners of the canal fund to the comptroller. The comptroller's responsibility for licensing private detectives, auctioneers, steamship ticket agents, and theater ticket brokers was transferred to the Department of State. The new Department of Taxation and Finance, which absorbed the duties of the former state treasurer, assumed the comptroller's former responsibility for administering revenue-collecting activities. This included activities under any law related to direct State taxes, duties of the comptroller concerning land taxes and land sales for payment of delinquent taxes, and custody of State employee retirement funds.

In 1975 (Chap. 219), the duties of the welfare inspector general, relating to complaints of abuses, fraud, or violations of the welfare system, were transferred to the Dept. of Audit and Control. An additional statute (Chap. 868) directed the comptroller to assist the Emergency Financial Control Board in carrying out its responsibilities relating to New York City revenues, expenditures, and indebtedness. The office of the State Deputy Comptroller for New York City was established within the department to fulfill this mission.

In 2003, the department established a Division of Investigations comprised of three offices: Office of Internal Audit, Office of Internal Control, and Office of Investigations. The new division?s mission is to detect and investigate potential fraud committed against state agencies. Also in 2003, the Office of Intergovernmental Affairs and Community Relations was established with three subdivisions: Intergovernmental and Community Relations, the Citizen Action Center, and the Correspondence Division. The purpose of this office is to facilitate dialogue between the State Comptroller?s Office and local governments and community organizations.

CURRENT FUNCTIONS. Under the direction of the state comptroller, chief fiscal officer of the State, the Department of Audit and Control is responsible for administering the accounts of the State.

The department carries out this responsibility by paying the State's bills and payrolls; auditing all revenues, receipts, and claims against the State; auditing the records, accounts, and financial and management practices of all State agencies and institutions; supervising the fiscal affairs of all units of local government in the State; reviewing the financial plans and fiscal and management practices of New York City; investing State funds and issuing bonds and notes; administering the State's retirement and social security agencies; administering the State's cash flow; and providing fiscal legal advice for State and local government agencies.

ORGANIZATIONAL HISTORY. This department traces its origin to 1625 when New Netherland authorities appointed a schout-fiscal to examine the accounts at New Amsterdam. In 1658, a Board of Audit consisting of the director general, receiver general, and a council member assumed auditing responsibilities. After the English took control in 1664, the auditing function was carried out by an auditor general appointed by royal authorities. However, the colonial assembly, established in 1683, gradually asserted greater control over fiscal matters. The responsibility for fiscal matters continued to be divided between royal officials and the elected assembly until the Revolutionary War.

During the early days of Revolution, the Provincial Congress chose auditors from among its own members and in mid-1776 appointed an auditor general. The first state consititution of 1777 created an Office of State Treasurer to collect and disburse revenues as authorized by the legislature but did not mention an auditor. However, an auditor general was appointed under a constitutional clause providing for the appointment of "other officers."

In 1782 (Chapter 21, Fifth Session), the legislature established the office of auditor to assume responsibility for settling the State's accounts. In 1787 the auditor assumed the duties relating to collection and commutation of quit rents previously carried out by the treasurer. In 1788, the auditor was directed to settle accounts with the United States and certain other states.

To avoid conflicts between the auditor and the treasurer, the legislature established the Office of Comptroller in 1797 (Chapter 21), combining the auditor's power to audit and the treasurer's power to pay into one chief fiscal officer. The comptroller assumed all duties of the auditor and certain powers of the treasurer, including drawing up warrants to pay, investing the State's funds, and borrowing money on the credit of the State. The comptroller was appointed by the Council of Appointment until the 1821 constitution provided for election of the comptroller by the legislature. Under the 1846 and subsequent constitutions, the comptroller was elected in a general election.

The comptroller was designated a member of the Board of Commissioners of the Land Office in 1801 and was directed to sell lands for payment of delinquent State taxes. When construction of the canal system began in 1817, the comptroller was appointed to the Board of Commissioners of the Canal Fund and later to the Canal Board. The commissioners of the Canal Fund were responsible for managing the debts and funds of the State's canals. The Canal Board, comprised of the commissioners of the Canal Fund and the canal commissioners (responsibile for canal construction and repair), exercised overall supervision over the State's canal system. The comptroller remained a member of the Land Board until it was reorganized in 1926, and of the Canal Boards until they were abolished in 1926.

The comptroller examined the financial affairs of banks from 1843 until the creation of the Banking Department in 1851. From 1849 until the creation of the Insurance Department a decade later, the comptroller regulated the organization and operation of insurance companies. Beginning in 1865, State-supported hospitals and charitable institutions were required to report on their financial conditions to the comptroller, and in 1873 the comptroller was empowered to examine the financial affairs of prisons and various other State institutions. In 1880 the comptroller was authorized to initiate a system of collecting taxes on corporations. The comptroller assumed the duties of the former office of canal auditor in 1883. Beginning in 1905, municipal divisions of the State were required to adopt uniform fiscal reporting systems and to file annual reports subject to examination by the Comptroller's Office.

In 1910 (Chapter 149) State agencies were required annually to submit a proposed expenditure plan to the comptroller, who then forwarded recommendations to the Assembly Ways and Means and the Senate Finance committees. This was the forerunner of New York State's executive budget process. In 1913 the comptroller's auditing powers were strengthened by a law (Chapter 342) requiring agencies to adopt a uniform system of accounts, uniform fiscal reporting, verification of purchases and services, and the comptroller's prior approval of all contracts over one thousand dollars. In 1920 (Chapter 741) a State employees retirement system was established under the administrative control of the comptroller.

The 1925 constitutional amendment reorganizing state government placed the elected comptroller at the head of a new Department of Audit and Control and assigned the office the duties of auditing all vouchers before payment, auditing the accrual and collection of all revenues and receipts, and prescribing accounting methods necessary to perform these activities. The 1926 law establishing the Department of Audit and Control (Chapter 614) transferred responsibility for the canal debt sinking fund from the commissioners of the canal fund to the comptroller. The comptroller's responsibility for licensing private detectives, auctioneers, steamship ticket agents, and theater ticket brokers was transferred to the Department of State. The new Department of Taxation and Finance, which absorbed the duties of the former state treasurer, was given the comptroller's former responsibility for administering revenue-collecting activities, including activities under any law related to direct State taxes; duties of the comptroller concerning land taxes and land sales for payment of delinquent taxes; and custody of State employee retirement funds.

In 1975 (Chapter 219), the duties of the welfare inspector general, relating to investigation of complaints of abuses, fraud, or violations of the welfare system, were transferred to the Department of Audit and Control. Another law that year (Chapter 868) directed the comptroller to assist the Emergency Financial Control Board in carrying out its responsibilities relating to New York City revenues, expenditures, and indebtedness. In that year, the new office of the State Deputy Comptroller for New York City was established as a part of the department to fulfill this mission.