Purpose of Audit

The purpose of our audit was to review the Board’s administration of grant fund moneys for the period of May 4, 2009 through September 25, 2013.

Background

The Town of Richmondville, located in Schoharie County, is governed by an elected five-member Town Board and has a population of approximately 2,600 residents. A project to redevelop commercial property in the Town cost approximately $5.6 million, funded by economic development grants, bank financing and private moneys from the developer. The facility opened in October 2012 but was forced to close 11 months later because utilities were turned off due to failure to pay. The facility, which is owned by the developer, is currently facing foreclosure.

Key Findings

• The Board failed to properly administer some aspects of the grants and may have to pay for a required audit because the developer has failed to do so.
• The Board relied on the developer’s consultants to prepare grant applications on its behalf and hired its own consultant to monitor the project, but it did not review the consultants’ work.

Key Recommendations

• Provide more oversight when reviewing and approving grant applications, and enter into written agreements to ensure that grants are in the Town’s best interest.
• Provide more oversight in monitoring performance and compliance with grant requirements.