[read complete report – pdf] | [read complete 2022 report – pdf]

Purpose of Review

The purpose of our review was to assess the City of Poughkeepsie Industrial Development Agency’s (IDA’s) progress, as of September 2024, in implementing our recommendations in the audit report City of Poughkeepsie Industrial Development Agency – Project Approval and Monitoring (2021M-168), released in July 2022.

The audit determined that the IDA’s Board did not properly evaluate and approve IDA projects and monitor the performance of businesses that received financial benefits. As a result, projects were missing applications, cost-benefit analyses, project agreements and uniform tax exemption policies. In addition, the Board could not verify two projects’ self-reported and calculated revenues upon which their payments in lieu of taxes (PILOTs) were based and did not ensure that projects were assessed late payment penalties totaling $30,676. The audit included eight recommendations to help officials monitor and improve the IDA’s project approval and monitoring.

Background

The IDA is an independent public benefit corporation established in 1974 for the benefit of the City of Poughkeepsie (City) and its inhabitants. The IDA is governed by a Board that included four members who were appointed by the City’s Common Council. The Board is responsible for reviewing and approving prospective project applications and overseeing the IDA’s financial and operational affairs. The Board contracted with a consultant to handle day-to-day operations, which included collecting approved project information.

Results of Review

Of the eight audit recommendations, IDA officials implemented five recommendations, partially implemented one recommendation, and did not implement one recommendation. We could not determine the implementation status for one recommendation because IDA officials have not entered into any new agreements since the initial audit was completed.