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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

County of Clinton Industrial Development Agency – Project Monitoring (2014M-205)


Released: December 12, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the Agency’s operations to determine if the Board monitored approved projects for the period January 1, 2013 through April 30, 2014.

Background

The County of Clinton Industrial Development Agency is an independent public benefit corporation established in 1971. The Agency is governed by a seven-member board appointed by the Clinton County Legislature.

Key Findings

  • The Board did not design and implement an adequate system to monitor the amounts directly billed and collected by taxing jurisdictions for payments-in-lieu-of-taxes.
  • Agency officials did not comply with the Uniform Tax Exemption Policy (UTEP) requirements for monitoring the sales and use tax exemptions used by approved projects.
  • The Agency did not have an effective process in place to monitor and evaluate agreed-upon job expectations.
  • The Agency did not have a process in place to ensure that properties are transferred back in a timely manner to project owners when bonds are retired or straight-lease agreements expire.

Key Recommendations

  • Establish and implement monitoring procedures to ensure that payments-in-lieu-of-taxes are being billed and collected in accordance with authorized agreements.
  • Ensure that project owners submit required forms as per the Agency’s UTEP and ensure that sales and use tax exemptions claimed are not in excess of the amounts authorized.
  • Establish and implement procedures to adequately monitor whether businesses are creating and retaining jobs as agreed to in their applications.
  • Establish and implement monitoring procedures to ensure that properties are transferred back to project owners in a timely manner.

Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.state.ny.us
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236