Purpose of Audit

The purpose of our audit was to evaluate the Agency’s revolving loan fund programs for the period August 1, 2012 through May 31, 2014.

Background

The County of Oswego Industrial Development Agency is an independent public benefit corporation created to promote, develop, encourage and assist in acquiring, constructing, improving, maintaining or equipping certain types of facilities. The Agency, which was created in 1973 by the State Legislature, is governed by a seven-member Board which is appointed by the Oswego County Legislature. As of May 31, 2014 the Agency had 113 loans outstanding, totaling approximately $11.7 million.

Key Findings

• It is OSC’s view that the Agency’s revolving loans, financed with its own funds, are not authorized by statute.
• The Agency has no formal process to compare current and projected jobs at the time of application to the reported number of jobs actually retained and created.

Key Recommendations

• Discontinue the practice of making loans from the Agency’s funds.
• Monitor companies’ job retention and creation performance.