A new audit from the New York State Comptroller’s Office has found that the Auburn Industrial Development Authority (AIDA) failed to adequately approve and monitor economic development projects, including missing documentation, delayed tax distributions, and poor oversight of job creation goals.
The audit reviewed AIDA’s operations between January 2023 and February 2025. It found systemic issues with how the agency evaluates project proposals and tracks their progress, raising concerns about accountability and public confidence.
Key findings include missing reports and late payments
The audit revealed that AIDA:
- Did not collect or review documentation supporting job and capital investment claims for projects
- Failed to ensure project owners submitted required annual reports and employment documentation (NY-45 forms)
- Did not conduct site visits in 2023 or 2024, despite a policy requiring annual inspections
- Made late PILOT (Payment in Lieu of Taxes) distributions totaling $1.27 million in 2023—some up to 100 days overdue
AIDA reported 16 active projects in 2023 with costs totaling $102 million. However, officials did not adequately monitor job creation goals. Eight of the 15 projects not under construction failed to meet their full-time equivalent (FTE) job targets by year’s end. Three projects fell short by over 50%, with job gaps as large as 113 positions.
Oversight gaps raise transparency concerns
The Comptroller’s Office concluded that AIDA lacked effective procedures to ensure accurate reporting and follow-through on economic development promises. Without proper monitoring, the agency cannot confirm that taxpayer-funded incentives are resulting in promised benefits such as job creation and capital investment.
In one case, project applicants were not required to provide baseline job numbers or investment figures, making future comparisons and accountability nearly impossible.
The audit also noted that although AIDA officials were aware of some underperformance issues, they did not formally document assessments or take steps to recover financial benefits such as sales tax exemptions or terminate underperforming PILOT agreements.
Recommendations and next steps
The report included five recommendations for AIDA, including:
- Requiring supporting documents for capital investment and job claims
- Enforcing annual submission of job and tax forms
- Conducting annual site visits
- Comparing job performance to project goals and documenting variances
- Creating written policies to ensure PILOTs are distributed accurately and on time
AIDA officials agreed with the findings and said they have already begun implementing corrective actions. The agency is required to file a corrective action plan within 90 days.
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