Purpose of Audit
The purpose of our audit was to determine whether TOHIDA followed its policies and procedures when approving and administrating the Green Acres Mall and Commons development projects and whether District 30 appropriately budgeted for the Green Acres payments-in-lieu of taxes (PILOTs) and the 2016-17 tax levy and for the period January 1, 2014 through June 30, 2017.
The Town of Hempstead Industrial Development Agency (TOHIDA) is a public benefit corporation established in 1971 for the benefit of the Town of Hempstead and is governed by a seven-member Board appointed by the Town Supervisor. The Valley Stream Union Free School District 30 is located in the Town of Hempstead in Nassau County and is governed by the Board of Education, which includes five members. Green Acres parcels paid $20.6 million in property taxes in 2015-16.
- The TOHIDA Board had not developed policies and procedures assessing the indirect tax impact of PILOTs.
- District 30 officials underestimated PILOT revenue resulting in $1.8 million in excess revenue and an unnecessary increase to class 1 (residential) 2016-17 tax rates.
- Develop additional policies and procedures to assess indirect tax impact of PILOTs.
- Develop accurate budget estimates to avoid levying excessive taxes and return excess PILOT revenue to its taxpayers.