Purpose of Audit

The purpose of our audit was to review the IDA’s process for evaluating and monitoring projects and to review its grant and loan program for the period January 1, 2014 through January 31, 2015.

Background

The Saratoga County IDA is an independent public benefit corporation established in 1971 to further economic development in Saratoga County. It is governed by a Board which comprises seven members appointed by the Saratoga County Legislature.

Key Findings

• The IDA had provisions to reduce assistance for businesses that did not meet their goals but did not do so because the Board did not review the performance of the businesses to determine whether or not to reduce assistance.
• The IDA issued 11 grants totaling $964,000 and made three loans totaling $1.2 million with its own money to local governments and private entities.

Key Recommendations

• Implement a process to periodically review projects that fall short of their job creation goals and determine whether or not to exercise financial assistance reduction or recapture provisions.
• Discontinue the practice of providing grants and loans of the IDA’s money.