State oversight

More than 100 public authorities and other agencies failed to comply with reporting requirements intended to shed more light on their operations.

Numerous north country agencies were among those cited by the state Authorities Budget Office for failing to submit a budget and audit reports ahead of state deadlines. Local development corporations have to submit to the office a budget 60 days before the start of their fiscal year. An audit and annual reports must be filed within 90 days after the year ends. Local officials attributed their missed deadlines to confusion, misunderstanding and other operational shortcomings.

The reports, while faulted by many local officials, provide additional transparency to local development corporations and similar quasi-public agencies such as the Jefferson County Civic Facility Corp., which was established as an end run around other state restrictions on the Jefferson County Industrial Development Agency issuing tax-exempt bonds for that purpose.

The Canton Capital Resource Corp. was also cited by the budget office, although the town supervisor believes them to be in compliance. The corporation was established to issue bonds to fund a dormitory at SUNY Canton.

However, in both instances, when the north country groups were formed, they were following precedents set elsewhere in the state, indicating that they were common funding mechanisms used by municipalities that had drawn critical reviews by state Comptroller Thomas P. DiNapoli.

The Massena Business Development Corporation, which did not conduct audits for several years, also failed to file its 2010 audit and report of activities with additional reports due this spring.

Some officials objected to their small organizations being held to the same standards as larger groups. However, regardless of their size, the organizations also spend public funds that should be accounted for and need to be brought under the full scrutiny of the state.