N.Y. Comp. Codes R. & Regs. tit. 8, § 170.3 – Boards of cooperative educational services.

(a) Each board of cooperative educational services shall have power and it shall be its duty to secure an annual audit pursuant to section 170.12(e) of this Part.
(b) The tentative administrative budget for the administrative costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to the guidelines prescribed by the Commissioner of Education and shall include the appropriations for expenditures necessary to maintain the activities of the office of the district superintendent, for general costs of administration, for expenses of the board, for expenses of meetings of trustees and voters, for needs assessments and planning and for expenditures for central support of operations, including the salaries and benefits of supervisors and other central administrative personnel. Supplemental retirement payments, health insurance benefits for retirees, other retirement benefits, and compensated absences for administrative and supervisory employees shall be included as part of the administrative budget; provided that where such a benefit is being funded currently for active employees whose salaries are charged to a program budget, the cost shall be charged to such program budget. In preparing a contingency administrative budget, increases in the cost of supplemental retirement payments, health insurance benefits for retirees, or other retirement benefits shall be disregarded in determining whether the budget exceeds the amount of the administrative budget for the previous school year. Appropriations in support of other administrative activities may be included in the tentative budget for the administrative costs of the board upon prior written approval of the Commissioner of Education. A schedule showing the proration, between the tentative budget for the administrative costs and the tentative budget for the program costs, of salaries and other expenditures required to support those positions which are partially responsible for the administration of any approved services to districts and to support those expenditures for central support of operations, shall be filed in the prescribed form for approval of the Commissioner of Education prior to the inclusion of such appropriation in the tentative budget for the administrative costs of the board.
(c) The tentative budget for capital costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to the guidelines prescribed by the Commissioner of Education and shall include the appropriations for facilities, including expenditures for rentals, for payments to the Dormitory Authority, for transfers to the capital fund for construction purposes and for repayment of indebtedness related to capital projects. Appropriations in support of other facilities expense of the board may also be included upon prior written approval of the Commissioner of Education. Such budget shall also include appropriations for expenditures resulting from court judgments and orders from administrative bodies and officers, and, to the extent that the tentative administrative budget for the board of cooperative educational services has been adopted, one-time retirement costs incurred in the first year in which an employee retires.
(d) The tentative budget for the program costs of the board of cooperative educational services presented to the annual meeting shall be in a form and according to the guidelines prescribed by the Commissioner of Education and shall include all expenditures for programs or services requested by the component school districts and approved by the Commissioner of Education, not authorized or approved for inclusion within the tentative budget for the administrative costs of the board pursuant to subdivision (b) of this section, or in the tentative budget for capital costs of the board pursuant to subdivision (c) of this section.
(e) For the purposes of preparing and adopting a contingency administrative budget for the 1994-95 school year, the board of cooperative educational services shall separate its administrative, capital and program costs for the 1993-94 school year in the same manner as prescribed for the tentative budgets for the administration costs, the capital costs and the program costs in subdivisions (b), (c) and (d) of this section respectively. Such contingency administrative budget for the 1994-95 school year and a statement of the separate administrative, capital and program costs for the 1993-94 school year, shall be prepared in a form and according to the guidelines prescribed by the Commissioner of Education and shall be submitted to the commissioner for approval.
(f) The execution of installment contracts for purchases of personal property by boards of cooperative educational services shall be made in accordance with the following provisions:
1. (1) Personal property may be purchased by means of an installment contract, provided that a period of probable usefulness has been established pursuant to paragraph 29 or 32 of subdivision (a) of section 11 of the Local Finance Law, or provided that the expenditure is for the establishment or replacement of a computer system, including hardware, software and installment costs.
2. (2) The maximum term of an installment contract shall be the period of probable usefulness established for the object to be purchased or five years, whichever is less.
3. (3) No payment under the installment contract may be made from the proceeds of bonds.
4. (4) Before executing an installment contract, the board shall adopt a resolution determining that such agreement is in the best interest of the board of cooperative educational services, which resolution shall state the basis for that determination.
5. (5) The installment contract shall be subject to the bidding requirements of section 103 of the General Municipal Law.
6. (6) The approval of the commissioner shall be obtained prior to the execution of an installment contract.
7. (7) Each installment contract shall include provisions for annual cancellation by the board of cooperative educational services as a result of the withdrawal of requests for the service programs which make use of the object of the contract.
(g) The cost of shared services provided by a board of cooperative educational services to its component school districts during the 1996-97 school year and thereafter shall be reported to the commissioner in accordance with a statewide uniform cost methodology that computes such costs according to each district's current year enrollment in such services as follows:
1. (1) Occupational education services with a program serial number in the 101 to 199 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual number of pupils receiving such services in each participating district in the current school year.
2. (2) Instruction for special education services with a program serial number in the 201 to 299 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual number of students receiving such services in each participating district in the current school year; provided that the cost of related services shall be computed on the basis of the anticipated or actual units of service provided.
3. (3) Itinerant services with a program serial number in the 301 to 399 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual portion of full-time equivalent (FTE) staff providing the itinerant services received by each participating district in the current school year.
4. (4) General instruction services with a program serial number in the 401 to 499 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual number of pupils receiving such services or units of service received by each participating district, or the number of districts participating in the current school year; provided that the commissioner may determine, based upon the manner in which the particular service is delivered, that the anticipated and when available the actual service recipient or units of service received, or number of districts participating shall be the sole basis for computing such cost for a particular type of general instruction service.
5. (5) Instructional support services with a program serial number in the 501 to 599 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual number of pupils or district staff receiving such services, or by the portion of full-time equivalent (FTE) staff providing instructional support services or units of service received by each participating district, or the number of districts participating in the current school year; provided that the commissioner may determine, based upon the manner in which the particular service is delivered, that the anticipated and when available the actual number of service recipients, or portion of FTE staff, or units of service received, or number of districts participating shall be the sole basis for computing such cost for a particular type of instructional support service.
6. (6) Other services with a program serial number in the 601 to 699 range, as assigned by the commissioner consistent with the system of accounts prescribed by the State Comptroller in accordance with section 36 of the General Municipal Law, shall be computed on the basis of enrollment as determined by the anticipated and when available the actual number of pupils or other persons receiving such services, or portion of full-time equivalent (FTE) staff providing such other services, units of service received by each participating district, or number of districts participating in the current school year; provided that the commissioner may determine, based upon the manner in which the particular service is delivered, that the anticipated and when available the actual number of service recipients, or portion of the staff, or units of service received, or number of districts participating shall be the sole basis for computing such cost for a particular type of other service.
7. (7) All reports of cost of service issued by any board of cooperative educational services in accordance with the statewide uniform cost methodology shall display such costs computed in accordance with the provisions of this subdivision based on data available to the board of cooperative educational services at the time.
8. (8) As used in this subdivision, current school year shall mean the school year in which the shared service is provided.
9. (9) For purposes of the report to the commissioner pursuant to this section, the budgeted cost of shared services to be allocated among component school districts for the current school year shall be computed by determining the rate to be charged for each type of service in accordance with paragraphs (1) through (6) of this subdivision, as determined by the board of cooperative educational services as of a date or dates no later than May 15th of the school year prior to the service being provided. After the conclusion of the current school year, the board of cooperative educational services shall adjust such rates to reflect unanticipated changes in each district's enrollment that occur during the current school year, and, on or before September 1st next following the close of the school year, shall report the actual cost of shared services based upon actual participation through the end of the school year.
(h) For the 1997-98 school year and thereafter, the cost of shared services to be allocated to, and paid by, component school districts shall be determined in accordance with a local uniform cost methodology developed pursuant to sections 1950(4)(d)(3) and 1951(1) of the Education Law. Commencing with budgets for the 1997-98 school year, boards of cooperative educational services shall report to the commissioner the budgeted local unit cost and, when available, the actual local unit cost of shared services. The cost of shared services to be allocated to component school districts for programs for students with disabilities in accordance with the local uniform cost methodology shall be adjusted after the conclusion of the current school year on the basis of enrollment as determined by the actual number of students receiving such services in each participating district in the current year.
(i) On or before January 1, 1997, each board of cooperative educational services (BOCES) shall develop and adopt a formal policy on personal property accountability, including procedures governing the acquisition, sale and disposal of personal property, and shall submit such policy to the commissioner for approval in accordance with this subdivision. In the event such policy or any portion thereof is not approved by the commissioner, the board of cooperative educational services shall adopt a revised policy which addresses the deficiencies identified by the commissioner, and shall submit the revised policy to the commissioner within 30 days of its receipt of notice that the policy has been disapproved. To be approved, such policy shall be consistent with the following provisions:
1. (1) Definitions. For purposes of this subdivision and subdivision 18 of section 1950 of the Education Law:
  1. (i) Personal property shall mean all tangible personal property of the board of cooperative educational services that is not consumable and has a useful life of one year or more, including but not limited to equipment, supplies, parts, vehicles and materials, provided that such term shall not include buildings or other real property or equipment which is permanently affixed to real property, or leases, notes or other written instruments.
  2. (ii) Valuable personal property shall mean personal property which has a unit resale value of $500 or more, and supplies, parts or materials which are disposed of in lots having an aggregate resale value of $500 or more.
  3. (iii) Surplus personal property shall mean personal property which has no known, immediate or currently foreseeable use to the board of cooperative educational services.
2. (2) Components of policy. Each personal property accountability policy shall, as a minimum, include the following components:
  1. (i) Procedures for the acquisition of personal property by purchase, which shall require compliance with all applicable laws on competitive bidding and procurement, shall specify the approvals needed for the acquisition of property and the staff authorized to approve the acquisition, and shall assure that newly acquired personal property is duly recorded and included in the perpetual inventory system of the BOCES.
  2. (ii) Procedures for the acquisition of personal property by gift, including surplus property and property donated to the BOCES by bequest or devise in a will or in a trust instrument, which shall specify the approvals needed for the acquisition of property by gift and the staff authorized to approve the acquisition, and shall assure that newly acquired personal property is duly recorded and included in the perpetual inventory system of the BOCES.
  3. (iii) Procedures for the perpetual inventory of all personal property, including the periodic inventory of valuable personal property having a unit resale value of $500 or more on at least an annual basis, and the periodic inventory of all other personal property at least once every two years.
  4. (iv) Procedures for the disposition of personal property where such property has been determined to be obsolete, surplus or otherwise not needed by the BOCES. Such procedures shall provide for the sale of valuable personal property to the highest bidder, except that such procedures may authorize the disposition of property whose market value would classify it as valuable personal property, but which is determined not to be marketable because it is damaged or in poor condition or is obsolete and has proven not to be marketable after at least one prior attempt at competitive bidding. Such procedures shall also provide for the disposition of all other personal property, including property determined to have no or little value or not to be marketable.
  5. (v) Procedures for accountability of officers and employees of the BOCES for violations of the policy, which shall include but not be limited to a prohibition against the unauthorized use of personal property and the theft or conversion of personal property, a statement of the actions to be taken by the BOCES where BOCES staff violate the policy, the designation of staff responsible for enforcement of the policy, and procedures for assuring that BOCES staff are informed about the policy.
3. (3) Review and amendment of policy. Each board of cooperative educational services shall annually review its policy on personal property accountability, and make any amendments it deems necessary. Any such amended policy shall be submitted to the commissioner for approval within 30 days of its adoption by the board of cooperative educational services.
  (j) Instructional support services.
  For purposes of subdivision (8-c) of section 1950 of the Education Law, instructional support services shall mean staff and curriculum development programs, activities, in-service and training for school district staff which enable school districts to achieve the following purposes:
4. (1) implement high learning standards for all students through revised curriculum and a revised assessment system to measure student progress in reaching high learning standards;
5. (2) build the capacity of schools to support student learning at high levels through more effective teaching practices, better use of time and use of instructional technology; and
6. (3) develop an institutional accountability system through public reporting on student achievement.
  (k) Career education instructional equipment reserve fund.
7. (1) Definitions. As used in this subdivision:
  1. (i) Career education shall mean a career and technical education program as defined in section 100.1(l) of this Title.
  2. (ii) Career education instructional equipment reserve fund (or reserve fund) shall mean a reserve fund authorized pursuant to Education Law, section 1950(4)(ee).
  3. (iii) Participating school district shall mean a component school district of the board of cooperative educational services.
8. (2) A career education instructional equipment reserve fund may be established upon the approval of the Board of Cooperative Educational Services (BOCES) and the vote of a majority of the boards of education of the participating school districts. The district superintendent shall notify the commissioner of the establishment of the reserve fund within 60 days of such action.
9. (3) The career education instructional equipment reserve fund shall be fiscally managed in a manner satisfactory to the commissioner using such forms as the commissioner may require.
10. (4) Depreciation expenses for career education instructional equipment may be included in the computation of the cost of career education instructional services, provided that the amount included in any school year shall not exceed 10 percent of the BOCES current year career education services budget. Such depreciation expenses shall be computed in accordance with the following:
  1. (i) Depreciation shall be computed using a straight-line 10-year method from the time of purchase of new career education instructional equipment or from the time of professional appraisal of currently held career education instructional equipment. For purposes of this paragraph, new equipment shall mean equipment purchased after the establishment of the reserve fund, and currently held equipment shall mean equipment owned or held prior to the establishment of the reserve fund.
  2. (ii) Depreciation expense for new career education instructional equipment with a purchase price of $1,000 or less shall not be included.
  3. (iii) Depreciation expense for currently held career education instructional equipment with the replacement value of $1,000 or less shall not be included. Replacement value shall be determined by a professional appraisal made within the three years preceding the creation of the reserve fund.
11. (5) An amount not exceeding the greater of 20 percent of the BOCES current year career education services budget or $500,000, may be retained in the reserve fund at the end of a school year for future expenditures, provided that the total amount retained shall not exceed $2,000,000.
12. (6) Revenues from the sale of career education instructional equipment purchased with State or local funds shall become part of the reserve fund.
13. (7) The career education instructional equipment reserve fund shall be used to purchase only advanced technology equipment to be used for instruction in State-approved career and technical education sequences, courses or curricula. All purchases shall be subject to the approval of the commissioner.
14. (8) Expenditures from the reserve fund shall be clearly identified and reported in a manner and using forms prescribed by the commissioner.
15. (9) The approved cost of services for purposes of calculating the apportionments pursuant to Education Law, section 1950(5) shall exclude all expenditures from the career education instructional equipment reserve fund. For the year in which the career education instructional equipment reserve fund is liquidated, such approved costs shall be reduced by the portion of the amount distributed to participating districts which was previously aided pursuant to Education Law, section 1950(5).
16. (10) A career education instructional equipment reserve fund may be liquidated upon the approval of the board of cooperative educational services. Any funds remaining in the reserve fund at the time of liquidation shall be distributed to participating districts no later than 90 days after liquidation is approved.