State Comptroller Audit Critical Of Five Upstate Industrial Development AgenciesPosted: April 29, 2015
The New York State Comptroller’s office recently released audits on 5 upstate Industrial Development Agencies. According to NYS Comptroller Tom DiNapoli:
Too many communities are left with unanswered questions about the effectiveness of providing costly tax breaks to private companies. IDAs owe it to taxpayers to appropriately track whether companies are delivering on their promises and take back benefits if they are not.
The one Central New York IDA that was audited was the Oswego County IDA. The Comptroller’s audit found that the County of Oswego IDA:
•Established an unauthorized revolving loan program, using its own funds, to finance a portion of the cost of projects. The IDA had 90 loans outstanding as of May 31, 2014, totaling nearly $9.6 million that were financed by its own funds.
•There is no formal process to compare current and projected jobs at the time of application to the reported number of jobs actually created and retained.
•Auditors found 31 companies that received loans only created half of the jobs they said they would create.