Issued Date
July 08, 2022
Audit Objective
Determine whether the City of Poughkeepsie Industrial Development Agency (CPIDA) Board properly evaluated and awarded projects and monitored the performance of the businesses that received financial benefits.
Key Findings
The CPIDA Board did not properly evaluate and approve projects and monitor the performance of businesses that received financial benefits. Specifically:
- The Board did not have a process to adequately oversee and monitor CPIDA projects. As a result, projects were missing applications, cost-benefit analyses, project agreements and uniform tax exemption policies.
- The Board cannot verify two projects’ self-reported and calculated revenues upon which their payments in lieu of taxes (PILOTs) are based on. These projects have 99-year PILOT agreements.
- CPIDA officials did not ensure that projects were assessed late payment penalties totaling $30,676.
Key Recommendations
- Develop written procedures to periodically monitor projects’ progress and document findings in writing.
- Require the City or one of the taxing jurisdictions to request the project owners’ financial information to ensure the City is receiving the proper PILOT amounts.
- Ensure City officials provide the Board with periodic PILOT payment reports and assess penalties for late payments.
CPIDA officials generally agreed with our findings and indicated they plan to initiate corrective action.