DELHI - A state audit has found that the Delaware County Industrial Development Agency failed to adequately monitor taxpayer-subsidized development projects and did not meet basic website transparency requirements, shortcomings that auditors said limited public accountability for millions of dollars in tax exemptions.
The audit, released Dec. 19 and covering the period from Jan. 1, 2022, through May 21, 2025, examined whether the agency properly tracked projects receiving financial assistance and whether it made required information available to the public online. Auditors concluded that it did neither consistently nor systematically.
Industrial development agencies provide incentives such as sales, use and mortgage recording tax exemptions to encourage economic development, typically in exchange for commitments to create or retain jobs and invest capital locally. In 2024, the Delaware County IDA reported eight active projects with a combined value of $116 million.
Auditors reviewed six projects approved after June 1, 2016 — three operational and three under construction during the audit period — and identified multiple areas where oversight fell short.
For operational projects, auditors found that job creation and retention goals were not independently verified. While agency officials said the executive director conducted periodic site visits and discussed employment progress with project owners, those visits were not documented. Employment figures were based entirely on self-reported data, and the agency did not obtain supporting documentation, such as state payroll and unemployment insurance filings, required under project agreements. As a result, auditors said they could not confirm whether reported job numbers were accurate.
In one case, a project failed to meet its job targets. Agency officials told auditors the board discussed the shortfall and chose to continue providing financial assistance, citing broader community benefits. Those discussions, however, were not documented.
Auditors also found weaknesses in tracking financial benefits granted to projects under construction. During the audit period, three projects received $1.2 million in sales and use tax exemptions, and two were approved for $226,000 in mortgage recording tax exemptions. The agency did not track exemptions cumulatively or routinely request annual state filings that would show whether limits had been exceeded. Nor did it retain affidavits or other documentation to confirm the use of mortgage recording tax abatements.
Capital investment commitments were similarly unverified. Project agreements called for a combined $53 million in planned investments, but auditors found no procedures to confirm whether those investments were actually made, potentially depriving local communities of anticipated economic benefits.
The audit also identified significant transparency lapses. Of 56 documents required to be posted on the agency’s website under state oversight rules, 25 — or 45% — were missing as of mid-May 2025. Absent materials included board and committee meeting records and annual assessments detailing the progress of active projects.
The audit was conducted by the New York State Comptroller, which concluded that without stronger monitoring and disclosure, the agency lacked the information necessary to evaluate project performance or ensure accountability.
In a written response dated Dec. 5, the IDA acknowledged that its documentation “did not meet the standards sought” by the Comptroller’s Office, while noting that board members believed the information available to them allowed for meaningful discussion of outcomes. The agency said it relied on close working relationships and regular communication with project businesses to monitor progress but did not dispute auditors’ finding that it could not produce independent verification of results.
The IDA outlined several corrective actions. Future project agreements will require businesses to submit copies of state payroll and tax exemption filings directly to the agency. The agency’s chief financial officer will obtain publicly available mortgage records to better document mortgage tax abatements, and beginning with the 2025 tax year, project owners will be required to submit annual reports detailing investments, employment levels and the value of exemptions received. The executive director will also present a formal annual assessment of each active project to the board.
Regarding transparency, the agency said staffing shortages had hampered website compliance in recent years. After adding a staff member in February 2025, officials said the agency achieved roughly 55% compliance within three months and is now substantially compliant. The IDA plans quarterly reviews of website disclosures and a full redesign in early 2026 to improve public access to information.
Under state law, the agency’s board is required to submit a formal corrective action plan within 90 days of the audit’s release and is encouraged to make that plan available for public review.
To review the audit in its entirety visit: https://www.osc.ny.gov/files/local-government/audits/2025/pdf/delaware-county-industrial-development-agency-2025-88.pdf
