June 11, 2008

Comptroller Weitzman’s Audit Advisory Committee issues 2007 report;
progress on improving financial controls by agencies that contract with the County

From left are committee chair Robert Wild, Comptroller Weitzman, committee member Vivianne Hernandez and Committee member Louis C. Grassi.

In its fourth annual report to Nassau County taxpayers, the County’s independent Audit Advisory Committee evaluated the County’s internal control policies and procedures; reviewed how County departments take corrective action following an audit; spearheaded creation of a questionnaire for contract agencies on fiscal control; and identified possible savings opportunities in the County’s health costs. The seven-member committee, established by Comptroller Howard Weitzman in October 2003, provides outside financial advice and oversight to the County.

“Nassau’s independent Audit Committee is analogous to private sector audit committees required under the federal Sarbanes-Oxley Act,” Weitzman said. “The committee provides another 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. County taxpayers are fortunate to have a group of such dedicated and knowledgeable people willing to serve on this important committee. ”

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.

H. Richard Grafer, retired partner for Price Waterhouse, headed a subcommittee in 2007 that helped to develop an eight-page questionnaire on internal financial controls that puts more stringent reporting requirements in place for all social service agencies that contract with the county.

“I believe these new financial control measures, with the cooperation of the not-for-profit community, will help these agencies act as good stewards of public funds,” Comptroller Weitzman said.

The committee also followed up on the County’s compliance with “corrective action plans” or CAPS. These plans are recommendations from the Comptroller’s Office following an audit. Deputy County Executive Tom Stokes explained the administration’s process for ensuring that County agencies make appropriate improvements to their procedures after an audit. The committee expressed concern that the Comptroller has no authority to enforce compliance with corrective action plans and discussed implementing the CAP’s for county vendors, agencies and other governments that have been audited by the Comptroller’s office.

Other recommendations by the committee included a report on county health care costs and possible savings opportunities. The $225 million annual cost of health benefits for county employees and retirees comprise 8% of the county’s overall budget. The report, Providing Affordable Health Benefits for County Employees and Retirees: Some Suggested Solutions, analyzed the skyrocketing health costs for county employees and made recommendations for ways the county can reduce those costs.

The Audit Committee also conducted oversight work in many other areas, including:

• Monitoring the financial condition of the Nassau Health Care Corporation
• Monitoring the County’s budget and multi-year plan and fiscal condition throughout the year.

A subcommittee on Financial Controls focused on ideas for improving the contract and claims approval process, which some said had slowed last year.

The members of the Audit Committee are: Robert A. Wild, (Committee Chair) Chairman and Managing Partner, Garfunkel, Wild & Travis, P.C.; Lee E. Launer, retired partner, PriceWaterhouseCoopers; Vivianne Hernandez, Managing Partner, Bridging Strategies; Louis C. Grassi, Partner of Grassi & Co., CPAs; Tom Stokes, Deputy County Executive, and Aline Khatchadourian, Nassau County’s Deputy Comptroller for Audit and Special Projects, serving as designee of the Comptroller.

Audit Advisory Annual Report-2007