THOMAS P.

DiNAPOLI 110 STATE STREET

STATE COMPTROLLER ALBANY. NEW YORK 12236

STATE OF NEW YORK

OFFICE OF THE STATE COMPTROLLER

May 24,2010

Michael J. Elmendorf, II, State Director'

National Federation of Independent Business - New York
I One COlpmerc~ PlazCl,§.l!i1~803 " _._ ~ _.__ .-.~_.-.-.-
Albany, NY 12260

Dear Mr. Elmendorf:

Thank you for your letter of April 29, 2010, requesting an audit of the Department
of Taxation and Finance, and for bringing the concerns of your members to our attention.'

We have engaged an audit of the Department of Taxation and Finance

(Department), specifically of its audit division and the recent Initiative to increase
revenues.

It is not the role of the Office of the State Comptroller to audit the Department's
judgment or policy to increase revenues through the use of sophisticated data analysis or
statistical modeling. However, we do plan to examine whether the Department has
properly developed the use of these audit tools by ascertaining if the Department has
established appropriate policies, procedures and training in the use of these new
techniques. We will also examine the Department's compliance with its related policies
and procedures.

1-------------I-appreciate--yourbringin-gth-e~,_e-is-su~"S-mour attenti6ri:-As you may know, we ao

not comment on the progress of an audit once it has commenced. We will let you know
once the audit is final and available to the public.

If you have any questions in this regard, please feel free to contact me.

~~
Thomas P. DiNapoli
State Comptroller