05-10-2007

In its third annual report to Nassau County taxpayers, the independent Comptroller’s Audit Advisory Committee, established by Comptroller Howard S. Weitzman, said that in 2006 it continued to monitor closely the county’s efforts to improve internal financial controls throughout county government and to develop uniform procedures throughout its departments.

The seven-member Audit Committee is one of a handful of such committees of independent experts from the community that provide outside financial advice and oversight to counties in New York State. In 2006 the committee reviewed Nassau’s financial position and budget, the status of tax certiorari payments, and the financial condition of the Nassau Health Care Corporation, the report said.

The Committee consists of five volunteer experts and two government officials. The Comptroller and a director from the county’s external audit firm, Deloitte & Touche, also attend each meeting. Service on the committee is pro-bono.

Committee Chair Dr. Ralph Polimeni, Vice Provost for Accreditation and Assessment of Hofstra University, said, “The county has been making progress on improving its financial transparency and accountability in the three years since this citizen’s audit advisory committee was established. Nassau needs to continue its efforts to improve financial controls and procedures and make them more uniform throughout the various departments. In addition to monitoring this issue, in the year ahead the committee intends to focus on procedures necessary to improve the collection of state sales tax, the financial impact of post-retirement health benefits, and the continued return to financial health of the county’s public hospital.”

The county’s growing liability for retiree health benefits is a critical financial challenge with an estimated liability as high as $4 billion. A recently enacted standard of the Governmental Accounting Standards Board (GASB) requires local governments to begin calculating and disclosing such liability. To do so, the county is engaging an actuarial consultant. Dr. Polimeni said that members of the Audit Advisory Committee have begun analyzing the county’s health care costs. They intend to meet with county officials regarding the issue and report their findings and recommendations to the Comptroller.

Comptroller Weitzman said, “I thank the Audit Advisory Committee members for the valuable service they provide to Nassau County. In 2006, this independent committee continued to provide an increased level of assurance to the taxpayers – beyond that of the county’s external auditor and the Wall Street rating agencies – that the county is open and above-board in its financial dealings and taking prudent steps to safeguard the taxpayers’ money. I established the committee in 2003 to be similar to private sector audit committees required under the federal Sarbanes-Oxley Act.

County Executive Suozzi and I will continue to make sure that the committee continues to have access to the resources it needs to carry on its mission.”

In 2006, the members of the Audit Committee were:

Ralph Polimeni, (Committee Chair) Vice Provost, Hofstra University; H. Richard Grafer, Managing Member of Pathway Investments, LLC; Lee E. Launer: retired partner of PriceWaterhouseCoopers (Joined Committee October 5, 2006); Terence Smolev, (Committee Vice Chairman), Partner, Forchelli, Curto, Schwartz, Mineo, Carlino & Cohen LLP; Robert A. Wild, Chairman and Managing Partner, Garfunkel, Wild & Travis, P.C.; Ana Sousa: Deputy Director of Management Initiatives, Nassau County Office of Management and Budget, serving as designee of the County Executive, (joined Committee October 5, 2006) and Aline Khatchadourian, Nassau County’s Deputy Comptroller for Audit and Special Projects, serving as designee of the Comptroller, (joined Committee July 13, 2006).

Click here for the complete Audit Committee’s 2006 annual report (~ 73 kb .pdf file - 13 pages)

COMPTROLLER WEITZMAN’S AUDIT ADVISORY COMMITTEE FINDS NASSAU MAKING PROGRESS ON FINANCIAL CONTROLS