[read complete report – pdf]

Audit Objective

Determine whether the Chenango County Industrial Development Agency (CCIDA) Board of Directors (Board) evaluated projects prior to approval and subsequently monitored the performance of businesses that received financial benefits.

Key Findings

Although the Board evaluated projects prior to approval, the Board did not adequately establish and document its evaluation and approval process. In addition, the Board did not properly monitor the performance of businesses receiving financial benefits. The Board did not:

• Adopt the required uniform project evaluation or selection criteria needed to assess project applications.
• Develop the required cost-benefit analysis for each project it evaluated and approved.
• Cumulatively track project investments to identify investment shortfalls.
• Verify that businesses are meeting agreed upon job creation and retention goals.
• Track sales tax and mortgage tax exemptions to ensure they were not exceeded.
• Track payments in lieu of taxes (PILOTs) to ensure they were billed and paid in accordance with the PILOT agreements.

Key Recommendations

• Track and compare capital investment information to project goals as stated in applications.
• Verify that businesses are meeting agreed upon job creation and retention goals.
• Track PILOT payments to ensure that all bills are accurately prepared and paid timely.

CCIDA officials agreed with our findings and indicated they plan to initiate corrective action.