Determine whether the St. Lawrence County Industrial Development Agency – Local Development Corporation (LDC) officials ensured disbursements were properly authorized, supported and for valid purposes.
Although the tested disbursements were for valid purposes, LDC officials did not always ensure they were properly authorized and supported. Officials:
- Did not perform supervisory reviews of canceled check images and journal entries.
- Paid $300,000 during our audit period ($200,000 annually) to the St. Lawrence County Industrial Development Agency (IDA) without a written agreement detailing the services to be provided and the basis for the payment.
- Paid payroll processing fees totaling $2,473 without review and approval of the related invoices.
- Review canceled check images and journal entries to provide additional oversight of the CFO’s duties.
- Establish a written agreement with the IDA that specifies the services to be provided to the LDC, the specific economic development activities LDC officials intend to fund, and the associated cost for each.
- Review and approve invoices for payroll processing services prior to payment.
LDC officials generally agreed with our recommendations and indicated they planned to take corrective action.