Audit Objective 

Determine whether Rensselaer County (County) Industrial Development Agency (RCIDA) officials ensured payments in lieu of taxes (PILOTs) were properly billed, collected and distributed to taxing jurisdictions timely. 

Key Findings 

RCIDA officials did not ensure all PILOTs were properly billed, collected and distributed. During the audit period: 

• Sixteen of the 62 bills we reviewed were inaccurate because the County’s Director of Real Property Tax (RPT Director) either used incorrect assessment values or tax rates and an inconsistent payment calculation process that resulted in two projects being overbilled a total of $170,842 and two projects being underbilled a total of $184,474.
• Two taxing jurisdictions received $10,607 more than they should have while five others did not receive $24,239 they should have.
• RCIDA officials did not adequately monitor and report all projects’ PILOT billings to the Public Authorities Reporting Information System (PARIS). 

Key Recommendations 

• Establish and implement policies and procedures, including a secondary review, to ensure all PILOTs are billed and distributed accurately.
• Ensure all PILOTs are monitored and reported to PARIS. 

RCIDA officials generally agreed with our recommendations and indicated they planned to initiate corrective action.