The Chautauqua County Industrial Development Agency is making changes to its operations following a report by the State Authorities Budget Office.
The report on the CCIDA, released on Monday, also includes a limited evaluation of the operations and activities of the Chautauqua Region Economic Development Corporation (CREDC) and the Chautauqua County Capital Resource Corporation (CRC).
The ABO said the board members of CCIDA, CREDC and CRC did not provide adequate oversight over management, adopt adequate policies and procedures, and monitor financial and management practices. The report goes onto say that the lack of oversight, review, and monitoring by the board members exposes the authorities to unnecessary risk and the potential for misuse of funds.
Some key findings of the report include:
– The CCIDA, CREDC, and CRC combined $1.9 million of funds into one bank account and misallocated expenses among separate local authorities.
– The CCIDA used $130,785 in funds for inappropriate and questionable discretionary spending, including sponsorships, donations, holiday dinners, flowers, and other gifts
– That $73,115 in CCIDA credit card purchases were made without receipts or adequate documentation, as well as the use of credit cards for $26,000 in inappropriate meal purchases and $11,194 in unauthorized purchases for another local authority
– That $50,629 of unauthorized and inappropriate CCIDA payments were made to Chief Financial Officer Rich Dixon, including $30,600 in car allowances and $18,429 in reimbursements for membership and other related expenses at a local golf course
The report serves as a formal warning to each authority and its board members to take immediate action to implement the ABO’s recommendations within ninety days or they will be censured by the ABO.
IDA Board Chairman Gary Henry said in the response to the recommendations by the ABO, that the board agrees that changes are needed and are working on bringing those changes in line with the recommendations.
The full report can be found at https://www.abo.ny.gov/reports/compliancereviews/CCIDA_CREDC_CRCFinalReport.pdf
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