[read complete report - pdf]

Audit Objective

Determine whether the Herkimer County Industrial Development Agency’s (HCIDA) claims were adequately supported, for appropriate purposes and independently reviewed and approved prior to payment.

Key Findings

We reviewed 100 claims totaling $846,279 and determined they were for appropriate purposes and generally supported by adequate invoices and/or other documentation. However, none of these claims were independently reviewed and approved prior to payment. We also found:

• The Board did not appoint someone to audit claims and did not develop and adopt written policies, procedures or other guidance to communicate expectations for the claims audit process.
• The Secretary of the Board (Secretary) reviewed the tested claims between one and 146 days after payments were made.

Key Recommendations

• Develop and adopt written policies and procedures for the claims audit process.
• Ensure all claims are audited and approved prior to payment.

HCIDA officials agreed with our recommendations and indicated they plan to initiate corrective action.