March 12, 2008
REVISED: April 28, 2008

Weitzman to conduct sweeping review of consultants on special district payrolls

Comptroller to share findings with Attorney General Cuomo

Nassau County Comptroller Howard Weitzman today announced that his office will be conducting a review of the hiring policies and practices for professional consultants, such as lawyers or accountants, in 44 commissioner-run special districts throughout Nassau. Since 2005 Comptroller Weitzman has released audits of special districts that comment critically on districts that wrongly categorize professional consultants as employees, giving them health benefits and pension credits. Attorney General Andrew Cuomo’s Office is currently investigating the practice statewide.

“In light of recent news of this pervasive practice in school districts, I am asking all special districts to report about consultants on payroll,” said Weitzman. “I will be sharing the findings with the State Attorney General’s Office as part of its investigation of outside consultants on the payroll of special districts.”

According to Comptroller Weitzman, this will encompass about 44 commissioner-run special districts. The County Comptroller does not have auditing authority over school or fire districts.

The Comptroller’s Office sent a letter this week to all commissioner-run special districts asking that they respond to a questionnaire concerning consultants on their payroll. The commissioners have until March 31 to respond. Comptroller Weitzman said that his office will share the findings with the Attorney General’s office. 

For guidance in determining if an individual is an employee or independent contractor, the Comptroller’s Office also included a copy of an excerpt from IRS Publication 15-A, which provides guidelines on this issue.

The 2005 audits conducted by Weitzman’s office revealed:

• the Franklin Square Water District had two outside attorneys on payroll, receiving health benefits and pension credits.
  

• the Great Neck Water Pollution Control District had an attorney on payroll receiving health benefits who was entitled to pension credits under his retainer agreement, though his time was never reported to the state.
  

• the Town of Hempstead Sanitary District One had an outside accountant on payroll, receiving pension credits and an outside attorney on payroll receiving health benefits
  

• the Town of Hempstead Sanitary District Two had two outside attorneys on payroll with health benefits but no pension credits reported.
  

• the Town of Hempstead Sanitary District Six had four outside attorneys on payroll, three of whom received health benefits and pension credits. 

“If any taxpayers or district employee believes that their district may be engaged in questionable activity in regards to the hiring of consultants, I urge them to contact my office at nccomptroller@nassaucountyny.gov or the Attorney General at public.integrity@oag.state.ny.us,” Weitzman said.

Letter to special districts to report about consultants on payrolls

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