Audits: Industrial Development Agencies
No audits released in 2011
New Rochelle, City of - Project Approval and Monitoring [pdf]
Project Approval and Monitoring
New Rochelle Industrial Development Agency (NRIDA) officials relied on the general procedural guidelines in NRIDA’s Uniform Tax Exemption Policy (UTEP) and did not have a checklist of specific criteria for evaluating project owners’ applications for financial incentives. In the absence of detailed evaluation criteria, they did not document the reasons for their project approvals and, therefore, there is no assurance that projects are evaluated in a consistent manner. Further, NRIDA officials did not perform a comprehensive cost-benefit analysis for any of the 10 projects we reviewed to determine if the benefits to the City would exceed the cost of providing tax abatements and exemptions, even though seven of the applications provided sufficient information. NRIDA officials also did not ensure that the applications for the other three projects, which collectively received over $29 million in tax exemptions since their inception, specified the dollar amounts for benefits requested and received. NRIDA officials also did not monitor the status of ongoing projects to ensure reasonable progress toward the projected benefits described in the original applications. Finally, during 2008 NRIDA did not remit approximately $1.3 million in payments in PILOTs to affected tax jurisdictions within 30 days of receipt as required by GML, but instead did so on an annual basis.
City of New Rochelle Industrial Development Agency[complete audit - pdf]
Rotterdam, Town of - Internal Controls Over Selected Financial Operations [pdf]
Internal Controls Over Selected Financial Operations
The Town of Rotterdam Industrial Development Agency (RIDA) Board members did not establish specific criteria for evaluating projects and documenting their approval decisions and, therefore, the public has no assurance of a consistent and fair process being used. In addition, RIDA officials did not have applications on file, as required by policy, for two projects, and did not receive an application for another project’s PILOT revision. They also did not verify key information included on the applications prior to project approval. Additionally, the Board did not adequately monitor project performance to ensure that approved projects were meeting their goals. RIDA officials also did not effectively monitor compliance with PILOT agreements and sales tax exemption applications. Finally, RIDA’s 2008 annual financial report was not complete and accurate.
Town of Rotterdam Industrial Development Agency[complete audit - pdf]