Citizens Audit Committee 2004 Annual Report

Despite Positive Findings, More Cost/Benefit Analysis is Needed

The Nassau County Comptroller's Audit Advisory Committee, in its first annual report on the county's fiscal practices, commended the county for improving its financial control systems, stabilizing the Nassau Health Care Corporation, and reducing the county's tax refund liability.

The Audit Committee also endorsed the county's efforts to improve internal controls in its Economic Development departments in the wake of financial mismanagement revealed there in 2003.

The seven-member Comptroller's Audit Advisory Committee, established by Comptroller Howard S. Weitzman in October 2003, is made up of five county residents with expertise in financial matters, and two government officials. It is one of a handful of citizens' audit committees providing outside financial advice and oversight to counties in New York State.

Describing the county's financial control system as "adequate," the Committee report nevertheless calls on the administration to continue improving and documenting the county's financial control systems, particularly in the area of expenditures. It also calls for the administration to ensure that "all quasi-governmental organizations within the county be contractually obligated to establish sound accounting procedures and internal controls." In January 2004, the Comptroller's Audit of the Economic Development Vertical (EDV) found that independent agencies under the umbrella of EDV, such as the county's Industrial Development Agency and Economic Development Corporation, had inadequate financial control systems.

Committee Chairman Ralph Polimeni, Dean of Business at the Frank G. Zarb School of Business at Hofstra University, said, "The audit committee is, overall, favorably impressed with the progress the county has made within the last two years as it has moved from a financial crisis to multiple credit rating upgrades. Much work is currently under way throughout the county government to strengthen and document financial controls. This work may sound mundane, but it is essential to ensure that the county maintains its credit ratings and does not regress into lax financial procedures. Our committee will continue to monitor the county's financial systems and report to the public annually."

Comptroller Howard Weitzman said, "Public-sector audit committees composed of qualified citizen volunteers, as we have established in Nassau, represent a valuable tool to prevent financial irregularities. Recent events, such as the financial scandal in the Roslyn school district, have focused public attention as never before on how much damage is possible when organizations lack proper financial control systems and oversight. That's why State Comptroller Alan Hevesi and I have strongly encouraged school boards throughout the county to set up citizen audit committees as we have done in Nassau, to provide an extra layer of financial oversight.

"I commend the members of the Nassau County Comptroller's Audit Committee for donating their time and expertise. As both the County Executive and I continue to work to improve the quality and efficiency of county government, they will provide us with essential guidance and oversight."

The members of the Audit Committee are:
Ralph Polimeni, (Committee Chairman) Dean of the Frank G. Zarb School of Business at Hofstra University; H. Richard Grafer, Managing Member of Pathway Investments, LLC; Edward S. Scott, Deputy General Counsel and Vice President of Development and Acquisitions for UrbanAmerica, LP; 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.; Martha Herrera-Wong, Deputy Nassau County Budget Director; and Manuel Mosquera, Deputy County Comptroller for Audits and Special Projects. A managing director from the county's external audit firm, Deloitte & Touche, also attends each meeting.

The Audit Committee's report is available by clicking on the report title (link) below:

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Citizens Audit Committee Issues First Annual Report On Nassau County ( ~ 78 kb, 23 pages, pdf file)