Audit Advisory Report

Nassau County Comptroller Howard Weitzman today released the Audit Advisory Committee 2008 Annual Report to Nassau County taxpayers, which this year focused on the effect that the volatile security markets had on the County’s finances. In 2008 the Committee appointed two members as a subcommittee to monitor the financial exposure of the County to long term debt and higher interest rates.

Other areas of focus for the Committee included monitoring the growing national financial crisis and areas of risk in the County budget, the declining sales tax revenues and the status of tax certiorari refund obligations.

"Nassau’s independent Audit Advisory Committee provides another level of independent assurance to the taxpayers—beyond that of the county’s external auditor and the Wall Street rating agencies—that the county is open and transparent in its financial dealings,” Weitzman said.

The seven-member committee, established by Comptroller Weitzman in October 2003, provides outside financial advice and oversight to the County.

"County taxpayers are fortunate to have a group of such dedicated and knowledgeable people willing to serve on this important committee,” he said.

The Comptroller and the firm director from the county’s external audit firm, Deloitte & Touche, also attend each meeting. Service on the committee is pro-bono.

The Audit Committee oversight work in 2008 included:

-Monitoring the County’s financial statements, comprehensive annual financial report and outside audits.

-Monitoring the County’s budget and multi-year plan and fiscal condition throughout the year.

-Particular attention was paid to NIFA and the County’s long-term debt. In 2008 the auction rate securities (ARS) market froze. The interest rates on NIFA’s ARS debt jumped costing County taxpayers additional interest expense. In March Comptroller Weitzman wrote to NIFA stating that NIFA variable rate debt be considered for conversion to fixed and that an analysis be performed comparing the costs and risks of fixed versus variable rate debt.

As the financial markets continued to present complications throughout the year, the subcommittee on financial exposure was briefed by the administration concerning NIFA’s change from ARS to variable rate debt obligations, the problems with that solution, the costs and risks of fixed versus variable rate debt for the County, NIFA and the Nassau Health Care Corporation.

The Committee was also updated throughout the year on sales tax, real estate tax, liability and refund payments, health benefits, the County’s Information Technology Department, collective bargaining issues, and the Comptroller’s 2008 internal audit plan.

During 2008, members of the Audit Committee were: Robert A. Wild, (Committee Chair) Chairman and Managing Partner, Garfunkel, Wild & Travis, P.C.; Lee E. Launer, retired partner, PriceWaterhouseCoopers; John B. Schwartzman, adjunct associate professor of Finance at Hofstra University and President of the Village of Sea Cliff Library Board of Trustees; Vivianne Hernandez, Managing Partner, Bridging Strategies; Louis C. Grassi, Partner of Grassi & Co., CPAs; Tom Stokes, Deputy County Executive for Management, Budget and Finance; and Aline Khatchadourian, Nassau County’s Deputy Comptroller for Audit and Special Projects, serving as designee of the Comptroller. The meetings are also attended by a representative of Deloitte & Touche, the County’s current independent auditor.

Weitzman’s Audit Advisory Committee issues 2008 report;

County long-term debt rates were focus for committee