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NYS Comptroller


Audits of Local Governments and School Districts

Genesee County Industrial Development Agency – Project Approval and Monitoring (2014M-66)

Released: May 14, 2014 -- [read complete report - pdf]

Purpose of Audit

The purpose of our audit was to review Genesee County Industrial Development Agency’s (GCIDA) process for evaluating, approving and monitoring projects for the period January 1, 2012 through January 27, 2014.


GCIDA is the sole IDA for Genesee County. The GCIDA Board consists of seven members, who are appointed by the County Legislature. The Board is responsible for the general management and control of GCIDA’s financial and operational affairs. According to its annual reporting, as of December 31, 2012, GCIDA had a total of 101 “active projects” totaling more than $600 million in reported capital investment.

Key Findings

  • The GCIDA Board has not formalized some of the critical procedures and policies that are used as criteria in the project evaluation processes.
  • The job report form used to obtain the information did not include all the data requirements needed by GCIDA officials to properly evaluate job performance. The form also does not require the businesses to separately report existing and new employees and the related compensation.
  • There is no data or basis to demonstrate how GCIDA established its minimum cost-benefit analysis ratio.
  • GCIDA officials do not adequately monitor businesses’ capital investments. Although businesses/firms indicate on their application the intended capital investment, they are not required to submit periodic progress reports or any other documentation to evidence their capital investments. As such, GCIDA officials have no assurance that the businesses/firms are meeting their investment goals.

Key Recommendations

  • Establish and formally adopt all policies and procedures critical to project evaluation, and define applicable criteria to ensure consistent application.
  • Ensure that GCIDA officials consistently use employee benefits attributed to newly created jobs in the cost-benefit analysis.
  • Formally develop a cost-benefit analysis ratio or ratios that meet its needs, is reflective of its economic environment and is an appropriate and reasonable measurement.
  • Develop procedures to monitor and ensure businesses’ actual capital investments are consistent with those specified on the applications and used in the cost- benefit analysis.

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