Evaluating a request to place a position in the exempt class of the classified service of the state or a political subdivision of the state

§44 of the Civil Service Law provides, in pertinent part, that "[t]he competitive class ... shall include all positions now existing or hereafter created ... except such positions as are in the exempt class, the non-competitive class or the labor class."

With respect to jurisdictionally classifying a position* as a position in the exempt class, §41.2 of the Civil Service Law provides that "No office or position shall be deemed to be in the exempt class unless it is specifically named in such class in the rules. Upon the occurrence of a vacancy in any position in the exempt class, the state or municipal civil service commission having jurisdiction shall study and evaluate such position and, within four months after the occurrence of such vacancy, shall determine whether such position, as then constituted, is properly classified in the exempt class. Pending such determination, said position shall not be filled, except on a temporary basis."

The New York State Department of Financial Services [DFS] requested that the New York State Civil Service Commission [Commission] place five new Special Assistant positions in the exempt class. The Public Employees Federation [PEF] objected to jurisdictional classification of the positions as DFS had requested.  The Commission considered the views of DFS and PEF with respect to jurisdictionally placing the five positions in the exempt class and ultimately adopted a rule placing the five positions in the exempt class. 

PEF then initiated a CPLR Article 78 proceeding seeking a court order annulling the Commission's determination. Supreme Court dismissed PEF's petition. 

The Appellate Division affirmed the lower court's ruling, explaining "[A]ppointments and promotions within the civil service system must be merit-based and, when practicable, determined by competitive examination". However, continued the court, a position for "which competitive or non-competitive examination may be found to be not practicable shall be designated as exempt."

Noting that a civil service commission's placement of a position in the exempt class is permitted when it determines that the nature of the  position is "confidential;" involves the performance of duties which require the exercise of authority or discretion at a high level; or the need for the appointee to have some expertise or personal qualities "which cannot be measured by a competitive examination," the Appellate Division said that its review of the Commission's determination "is limited to whether it was wholly arbitrary or without a rational basis".

Here, said the court, the record indicates that DFS requested exempt classification of the five positions was based, in part, upon the sensitive and confidential nature of the duties of the incumbent of the position and the ability of Special Assistants to influence policy and which appointees "were required to have a confidential relationship with DFS's superintendent and the full trust of the superintendent."

Noting that the Commission considered, among other factors, DFS summary memorandum explaining the basis for its request and the confidential character and the high-level responsibilities and duties of the incumbents of these five positions, the Appellate Division said that it could not conclude that the Commission's determination was arbitrary or without any rational basis.

* Article 1, §2.10 of the Civil Service Law defines the term "jurisdictional classification" as the assignment of positions in the classified service to the competitive, non-competitive, exempt or labor classes;" to be distinguished from "position classification" which is defined in Article 1, §2.11 of the Civil Service Law as "the grouping together, under common and descriptive titles, of positions that are substantially similar in the essential character and scope of their duties and responsibilities and in the qualification requirements..." for such positions.

Click here to access the text of the Appellate Division's decision.

 

A claimant seeking workers' compensation benefits must show a causal nexus between the accident underlying his claim and his employment

A Chief of Police [Claimant] of a Village in New York State filed for workers' compensation benefits in connection with injuries he sustained in a motor vehicle accident that occurred while he was driving a police vehicle. The Village's workers' compensation carrier controverted the claim. Ultimately the Workers' Compensation Board [Board] awarded Claimant workers' compensation benefits and the Village's workers' compensation insurance carrier [Carrier] appealed the Board's ruling.

The record indicated that Claimant was involved in the accident in the course of his taking a weekend trip, about a 4½ drive from the Village. Claimant had testified that "he carried his work cell phone, that he was on call 24 hours a day and that he drove his police vehicle to his weekend destination so that he could return to the Village if needed." Claimant also testified that:

1. He was not recalled at any point during the weekend;

2. He was not in the course of returning to work at the time of the accident; and

3. He was he attending to any other police matter at the time of the accident. 

After considering some procedural matters, the Appellate Division said that it agreed with the Workers' Compensation Board [Board] that the Carrier was precluded from submitting evidence on the issue of whether Claimant's injuries arose out of and in the course of Claimant's employment having waived such defenses.

The court, however, pointed out that the Carrier's waiver of its defenses did not relieve Claimant of his obligation to come forward with sufficient proof to establish that he suffered a compensable injury in the course of his employment. According, said the court, Claimant had the burden of demonstrating that "a sufficient causal nexus existed between his employment and the motor vehicle accident that caused his injuries" to support of his application for workers' compensation benefits.

The Appellate Division explained that the degree of control exercised by the employer over a claimant's activities at the time of the accident was a critical element "in determining whether the requisite causal nexus exists," a factual question for the Board. Further, the Board's determination regarding the required nexus will be upheld if supported by substantial evidence.

As Claimant offered no other testimony linking his weekend activities to his employment by the Village, the Appellate Division opined that the evidence offered by Claimant "falls short of demonstrating the requisite causal nexus between Claimant's accident and his employment." 

Accordingly, the court held that the Board's decision is not supported by substantial evidence and remitted the matter to the Board for further proceedings.

Click here to access the text of the Appellate Division's decision.

 

Municipal and school district audits released during the week ending January 9, 2021

New York State Comptroller Thomas P. DiNapoli announced that the following local government and school district audits were issued during the week ending January 9, 2021.

Click on the text highlighted in color to access the complete audit report

Local Government Audits

Citizens Hose Company – Board Oversight of Financial Operations (Ontario County) Auditors determined Citizens Hose Company did not have adequate controls in place to ensure that company funds were safeguarded. The company’s bylaws were insufficient because they did not provide detailed guidance for the treasurer or audit committee when collecting and depositing funds, recording cash receipts and disbursements and paying company bills. In addition, the treasurer misappropriated more than $20,000 of company funds. The company secretary also inappropriately used a company credit card for personal purchases of at least $1,100 without detection by officials. As a result of the audit, the former Citizens Hose Fire Company treasurer, pleaded guilty to felony grand larceny and was ordered to repay restitution.

City of Gloversville – City Clerk (Fulton County)Auditors found the former clerk did not properly account for fees. The former clerk waived fees for 249 certified copies of birth certificates totaling $2,490 without a valid reason. The former clerk also did not deposit all fees intact and substituted checks and money orders for cash collections. Auditors did determine that the current clerk was acting properly and accounting for fees as of Oct.1, 2017.

Ethics Oversight (Statewide Unit) This multi-unit audit included 20 individual audits including: 8 Counties: Albany, Chautauqua, Chemung, Genesee, St. Lawrence, Steuben, Suffolk and Tompkins; 8 Towns: Clay, Colonie, Greece, Oyster Bay, Ramapo, Southampton, Tonawanda and Union; and 4 Cities: New Rochelle, Rochester, Troy and Utica. Local governments must comply with New York State General Municipal Law (GML) and should do more to ensure proper ethics oversight.

Oneida-Herkimer-Madison Board of Cooperative Services (Oneida County, Herkimer County and Madison County) Oneida-Herkimer-Madison Board of Cooperative Educational Services (BOCES) officials did not regularly provide formalized information technology (IT) security awareness training. BOCES officials also did not assess computer usage to confirm IT assets were used for appropriate purposes or establish adequate controls to safeguard information contained in the network and financial system. Personal internet use was found on computers. In addition, network and application user accounts were not properly managed. Auditors also determined no disaster recovery plan was developed. Sensitive IT control weaknesses were communicated confidentially to BOCES officials.

Village of Monticello – Financial Condition (Sullivan County) The board did not adequately manage the village’s financial condition. As a result, the village is fiscally stressed. Auditors determined the village’s total fund balance will likely be fully depleted at the end of the 2019-20 fiscal year. The village also has exhausted nearly 100 percent of its constitutional tax limit. In addition, the village has significant infrastructure needs that it lacks the funds to address.

Village of Monticello – Records and Reports (Sullivan County) Auditors determined the treasurer did not maintain accurate, complete and timely accounting records or properly reconcile bank accounts in a timely manner. About $5 million of real property tax revenue was not posted to the accounting records. Bank reconciliations were generally performed two to three months after the statement date. In addition, periodic financial reports were not prepared for the board of trustees or department heads. Annual Update Documents, which are required annual financial reports, constitutional tax limit forms and adopted budgets were not filed in a timely manner, with some filed typically over 200 days late.

School DistrictAudits

Alexandria Central School District – Financial Condition Management (Jefferson County and St. Lawrence County) The district’s budgeted appropriations from 2016-17 through 2018-19 exceeded actual expenditures by $844,261, or 6.4 percent and the district did not need to use most of the appropriated fund balance for operations. The surplus fund balance in the general fund exceeded the 4 percent statutory limit for the past three fiscal years. As of June 30, 2019, surplus fund balance was $1.75 million, or 12.8 percent of the next year’s budget. In addition, district officials have not developed a long-term financial plan or a comprehensive reserve fund policy. Officials also did not implement the recommendations in a prior audit released in March 2016. This audit contains similar findings and recommendations.

Prattsburgh Central School District – Financial Management (Steuben County and Yates County) The board and district officials’ actions to manage financial condition were not transparent and more taxes were levied than necessary to fund operations. The board also appropriated fund balance totaling $1.13 million for fiscal years 2016-17 through 2018-19 but none of the money was used or needed to fund operations. For the last three fiscal years, the district reported that it exceeded the 4 percent statutory surplus fund balance limit, however when unused appropriated fund balance is added back, surplus fund balance exceeded the limit between 11 and 15 percentage points. In addition, the board did not develop written multiyear financial and capital plans.

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