[read complete report – pdf] | [read complete 2021 report – pdf]
Purpose of Review
The purpose of our review was to assess the Town of Hempstead Local Development Corporation’s (THLDC’s) progress, as of June 2025, in implementing our recommendation in the audit report Town of Hempstead Local Development Corporation – Project Approval and Oversight (2021M-37), released in September 2021.
The audit determined that the Board of Directors (Board) properly approved and monitored projects in accordance with standard project procedures. However, it did not set clear and specific goals when approving projects. The audit included one recommendation to help the Board and officials properly approve and monitor projects in accordance with standard project procedures and determine whether project goals are meeting the intended purpose.
Background
THLDC is a not-for-profit corporation established in 1966 by the Board of the Town of Hempstead (Town). THLDC’s Board is composed of seven members appointed by the Town Board and is responsible for THLDC’s general management and financial and operational affairs including approving projects that are consistent with the THLDC mission. The Executive Director, Chief Financial Officer and Corporate Administrator are responsible for day-to-day operations including the annual monitoring procedures. THLDC funds its operations with application, administrative and compliance fees paid by the not-for-profits.
Results of Review
The Board did not implement the audit’s recommendation. The Board delegated the responsibility for implementing THLDC’s Corrective Action Plan to their Corporate Administrator. While the Corrective Action Plan stated the Corporation will make every effort to expand upon and outline the completion goals in greater specificity in the Corporation’s Authorizing Resolutions so that clearer determinations can be realized in the monitoring process, the Corporate Administrator and THLDC officials could not provide a reasonable explanation for their lack of corrective action. As a result, the Board continues to not set clear and specific goals when approving projects.