KINGSTON – Ulster County Comptroller March Gallagher is critical of the county Economic Development Alliance’s “lack of transparency and accountability.”
She said over the last four years UCEDA has been responsible for disposal of the largest asset in Ulster County history, the former IBM property, valued at $18 million, and for the distribution of approximately $2 million in pandemic related business grant funding through the CARES grant programs.
Yet, UCEDA has “often struggled” with transparency and accountability. She said her office has audited the business grant programs, maintained detailed records on the transactions for the sale of the former IBM properties, reviewed all public materials, attended UCEDA meetings, offered comment to the Board of Directors at their meetings and informed legislative and executive leaders in meetings and memos.
“County legislators have served and continue to serve on the board. And yet, the problems persist,” Gallagher said.
She said in addition to the findings associated with both the CARES I and CARES II business grant audits, her office has commented in board meetings and to staff on the following topics:
- Lack of notice for board meetings
- Board materials not made public
- Lagging and incorrect financial reporting
- Presentation of duplicate claims for payment for Blueprint
- Failure to market or seek bids on the former IBM property
- Failure to disclose the terms of the sale of the former IBM property prior to board vote
- Lack of transparency on the costs to taxpayers associated with maintenance of the former IBM property
- Lack of segregation and accounting of funds for UCEDA funds including the imprest escrow account for transaction costs to sell the former IBM property
- Lack of documentation for the environmental remediation credit for iPark
- Improper tax treatment of income
- Delayed annual audit
Gallagher was also critical of the EDA board’s decision to eliminate public comments at the beginning of their board meetings preferring to receive all comments in writing. The UCEDA website now states: “[t]hose wishing to comment on agenda items, request to be added to the agenda, or sign up for public comment may do so via email . . .”
“What is the reason for requiring this change to the acceptance of public comment? And what will the result of this change be?” she asked.
The comptroller said while challenges in transparency, adequate procedures, and record-keeping have been blamed on staff, it is the board of directors that is charged with governance. “Over the last four years, the board has not provided the oversight and direction necessary for an organization of this importance. Consequently, taxpayer funds for business support were squandered and Ulster County taxpayers have little recourse should the redevelopment of iPark not happen.”
