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NYS Comptroller


Audits of Local Governments and School Districts

Allegany County Industrial Development Agency – Internal Controls Over Selected Financial Activities (2012M-244)

Released: May 31, 2013 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to examine the ACIDA’s internal controls over employee compensation and the approval and monitoring process for certain projects from January 1, 2008, to August 31, 2012.


The overall goal of IDAs is to advance the job opportunities, health, general prosperity, and economic welfare of the people of the State. The Allegany County Industrial Development Agency (ACIDA) was established in 1973 and is governed by a Board of Directors which comprises five members who are appointed by the Allegany County Legislature.

Key Findings

  • Several individuals received compensation from both the ACIDA and the County including the ACIDA CFO and Director, and the County Planner. However, there were no written job duties for the ACIDA Director. As such, it was not always clear when he was acting on behalf of the ACIDA or the County. Furthermore, the job description for the CFO does not indicate the normal work hours for that position. It is unclear whether services compensated for by the ACIDA were provided at times other than those for which these individuals were compensated as County employees.
  • The Board was unable to demonstrate it had adequately evaluated the impact on the ACIDA and its bond holder, the County, before approving a $3.5 million speculative project involving the purchase of land and installation of a water line.
  • The Board failed to use appropriate evaluation criteria before it approved the construction of a $760,000 facility with the apparent sole function of housing the Allegany County Departments of Aging and Veterans Affairs. There is no authority in General Municipal Law for an IDA to construct a building to be used for County office space.

Key Recommendations

  • Adopt written policies and procedures governing compensation paid to officers and employees to prevent the double-payment of compensation. Review compensation previously paid and recover any compensation that was improperly paid for time charged to both the County and IDA.
  • Ensure that there is a reliable plan in place to generate revenues for repayment of the bonds.
  • Establish written procedures to ensure that the review and approval of each project is for a permissible IDA project and adequately identifies the potential for achieving authorized goals of the IDA.

Local Government and School Accountability Contact Information:

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