NIFA hiring accountant to cut Nassau costs

A state oversight board says it's ready to take its shot at trimming the fat from Nassau County's $2.6 billion budget.

The Nassau Interim Finance Authority, which took control of the county's books in January, will hire an accounting firm this month that will spend the summer scouring Nassau's departmental spending and recommending ways to secure cost savings.

"The firm will be mandated to evaluate the existing organizational structure and identify any opportunities for cost reductions and productivity increases," said NIFA board member George Marlin.

The audit will focus on the spending, structure and operations of county departments, according to a request for proposals released by NIFA in April.

The control board, the RFP states, is seeking "quantifiable and actionable cost savings initiatives to assist the county in achieving balanced operating results as soon as possible. . . . The review should be focused on those areas of the county's operations most likely to yield savings and maximize state and federal aid."

Eight companies responded to the RFP by the May 23 deadline, Marlin said. NIFA is reviewing those bids and expects to pick a firm at its next board meeting this month. A date for that meeting has not been set.

The winning bidder would be expected to complete its review by Aug. 31. The recommendations then would be available to County Executive Edward Mangano, a Republican, prior to the issuance of his proposed 2012 budget, due out by Sept. 15.

While NIFA cannot impose the accountant's recommendations, Mangano's 2012 budget must still come before NIFA for approval, possibly putting pressure on the administration to implement the suggestions. "Hopefully common sense and public opinion will rule the day," Marlin said.

The Mangano administration indicated that it would cooperate with the review but did not comment on whether it would heed the recommendations.

"The administration welcomes yet another review of the dysfunction inherited from the prior county executive," Mangano spokesman Brian Nevin said in a statement. "Nassau County will now have the comptroller, Independent Office of Budget Review, NIFA and auditors to provide criticism. Frankly, the county executive would welcome advice rather than criticism, but it appears NIFA continues to be set on the latter."

Former County Executive Tom Suozzi, a Democrat, declined to comment.

Citing a $176-million deficit in the 2011 county budget, NIFA this year declared a fiscal crisis and froze the wages of county employees.

Mangano, who contends that his budget is balanced, has requested concessions from unions and has offered program cuts. If an agreement with labor is not reached by July 1, he plans to lay off 213 county employees and impose 13 days of unpaid furloughs on all county workers.

Reaction to the NIFA audit appeared to split along party lines.

"For quite a while now, the Democratic Caucus has been asking for this audit because we have no confidence in the county executive or the [county] comptroller," said Minority Leader Diane Yatauro (D-Glen Cove). "NIFA is taking a firm hand because of the Mangano administration's refusal to cooperate."

But Presiding Officer Peter Schmitt (R-Massapequa) called the audit "a waste of taxpayer money. NIFA ought to work jointly with the Nassau County comptroller's office to conduct audits."