Purpose of Audit

The purpose of our audit was to determine whether the Agency properly billed, collected and distributed payments in lieu of taxes (PILOT) in a timely manner for the period January 1, 2013 through December 31, 2013.

Background

The Town of Islip Industrial Development Agency is an independent public benefit corporation whose purpose is to promote, develop and assist industrial, manufacturing, warehousing, commercial, research and recreation facilities. The Agency, which was established in 1974, is located in the Town of Islip and is governed by a Board which comprises five Town of Islip Board members. During 2013, the Agency reported 89 projects with active agreements, 70 of which generated more than $13 million in PILOT payments.

Key Finding

• PILOT payments were not always distributed to affected taxing jurisdictions within 30 days, as required by law.

Key Recommendation

• Prepare warrants more frequently so that PILOTs can be distributed to taxing jurisdictions within 30 days.