Hevesi seeks to reform district audit process

April 9, 2005

State Comptroller Alan Hevesi asked delegates Friday to help him in reforming auditing procedures for school districts to root out the corruption that his office and prosecutors have found in several Long Island districts.

Hevesi asked for support for legislation to fund more audits of school districts, and legislation to toughen internal controls for school districts in order "to restore confidence of parents and taxpayers in their schools."

An audit has uncovered $11 million in missing money from Roslyn schools, Hevesi said, with two administrators and a relative arrested for felonies. The investigation found 29 people profited from the diversion of funds. Not one of the 29 was a teacher, Hevesi added.

Hevesi also used the RA's bully pulpit to rap the hypocrisy of President Bush's plan to reform Social Security. "This private account proposal is a direct attempt not to reform or change Social Security - that's a lie," said Hevesi. "It is an attempt to destroy the Social Security system."

Bush's attempt to push his plan has met with much public opposition, and Hevesi cited a recent development in a related effort. California Gov. Arnold Schwarzenegger has recently backed off from his plan to change California public pensions from a defined benefit to a defined contribution setup.

"Maybe he saw the light," said Hevesi, "or maybe it was because of the incredible reaction by teachers in California, public employees in California and citizens in California."