I have requested that the forum Administrator post a letter that I recently composed and mailed to the New York State Office of the State Comptroller - Office of Local Government and School Accountability that requests that an independent and comprehensive audit of the Schenectady Metroplex Development Authority be conducted. There has been no audit of this organization by the State Comptroller's office since the its establishment in 1998.
There have been numerous stories published in the Daily Gazette that address development that is planned in the City of Schenectady. Most of the business development plans include financing, in the form of grants and no/low interest loans from the Metroplex Authority. We have also recently learned that the Metroplex converted a loan to a grant for a business (Parsons Child and Family Center) that has been unable to achieve sustained profitability.
While I make no accusations or claims of impropriety or illegal activities by those on the Metroplex Board of Directors and administrative staff, I believe that an independent and comprehensive audit of the Metroplex is needed to ensure the accountability of expenditures of public revenues and to provide transparency to the operations of the organization.
I have concerns about the continued redistribution of public revenues (i.e., taxes) to private businesses being performed by the Metroplex. I believe that the focus of the Metroplex needs to be on financing the installation and maintenance of the infrastructure required to support business development and on establishing "shovel ready" sites. Business owners seek a climate/environment with established infrastructure, low taxes and cost of operations, and a trained, educated and skilled workforce in which to establish or expand operations.
If you agree with my assertion that an independent and comprehensive audit of the Schenectady Metroplex Development Authority should be performed by the New York State Comptroller's Office, I encourage you to write letters (or cut, paste, and edit my letter as required) expressing your support for this cause.
The Administrator will also be posting the letter that I received from the New York State Comptroller's Office in response to my correspondence. I have contacted many of the area media outlets (newspaper, radio, television, etc.) to share with them my call for the audit. I am hopeful that the concerns of the Schenectady County taxpayers will be addressed by our state government.
Office of Local Government & School Accountability
New York State Office of the State Comptroller
22 Computer Drive West
Albany, New York 12205
Dear Mr. Madej:
I am writing to request that the Office of Local Government & School Accountability conduct a comprehensive audit of the finances of the Schenectady County Metroplex Development Authority (hereafter “Metroplexâ€). As a taxpayer and resident of Schenectady County, l cite the need for an independent audit by the New York State Office of the State Comptroller of this organization to ensure the accountability of the expenditures of public revenues and to provide transparency to the operations of the Metroplex.
The creation of the Metroplex was prompted by the Schenectady 2000 Project, an effort that began in the early 1990s to revitalize Schenectady. The economic development agency uses a portion of the county sales tax receipts to promote private investment. The Metroplex Board of Directors is comprised of individuals who are appointed to represent the interests of the City of Schenectady and the surrounding towns in the county. According to the Metroplex website, the administrative staff consists of five paid employees.
It is my understanding that your office has not audited the Metroplex since its founding in 1998. The results of the Metroplex self-directed audits, conducted by independent certified public accountants with the firm Bollam, Sheedy, Torani & Co., LLP of Albany, for years 2003 and 2004 are posted on the organization’s web site ( http://www.schenectadymetroplex.org) under the “About Us†link. There are, however, no audit documents published for the years 2005 and 2006.
I have outlined in the attached document a list of questions pertaining to the Metroplex Development Authority’s operations that have been posed by many of my fellow Schenectady County residents. Several elected officials in the county government have stated that there is limited disclosure by the organization regarding the application process, the criteria for funding decisions, and the management of public revenues. I am uncertain as to which of these questions/concerns might be addressed in the audit performed by your office.
It is for the reasons cited above that I respectfully request that the Office of Local Government and School Accountability of the New York State Office of the State Comptroller conduct a comprehensive review and audit of the Metroplex Development Authority’s operations and finances and publish the results via mail, email or other means so that it may be available to Schenectady County residents for review at the earliest available time.
If you should require additional information pertaining to my inquiry, please contact me by telephone at (51xxx-xxxx or in writing to the above address.
I look forward to hearing from you.
Sincerely,
Bradley E. Littlefield
Questions to be addressed in an audit of the Schenectady Metroplex Development Authority:
What are the credentials of the company who performs the Metroplex self-directed audits? How was this firm selected?
Why are the results of the 2005 and 2006 annual self-directed audits not published to the Metroplex website? Are they available for inspection by the residents and taxpayers in Schenectady County?
Why do the operating expenses of the agency amount to ~15-20% of the annual tax revenues when the Board of
Directors positions are purported to be non-paid and the administrative staff consists of only five employees?
How much tax revenue is being realized from the businesses that are/have been financially supported by the grants and loans awarded by the Metroplex? (i.e., return on investment to the taxpayers)
How many full time and permanent jobs have been created by the businesses that have received financing from the Metroplex?
What percentage of the loans extended have been repaid? What is the percentage of loans that are in default?
What are the losses that have been realized?
What tax benefits are the residents of Schenectady County realizing from the spending decisions that have been made by the Metroplex for past/present/future projects?
What is the value of the collateral that has been pledged to secure the loans awarded and where/how are these collateral holdings being placed? Are the loans secured only by the Metroplex or does New York State retain some interest in the collateral holdings/assets. If there is financial collateral, is it in a particular bank or security, is it liquid and what rate of interest, if any, is it earning?
How much of future revenues have been allocated/awarded?
Describe the application process for requesting Metroplex funding and define the decision criteria.
List those applications that have been denied and provide the basis for denial.
How and by what criteria are contractors and construction firms selected? How does a company become eligible to compete for work - is there a formal process by which bids are solicited? (These questions are of interest because there appears to be an established relationship between the Metroplex and the Galesi Group.)
What is the amount of revenue that has been forfeited by the City of Schenectady and Schenectady County by extending tax incentives (e.g., tax “amnestyâ€) to businesses that are establishing operations with Metroplex financial support?
When is the projected return on investment expected to begin? When will these properties enter the tax rolls? What guarantees are in place in the event of default?
What is the policy regarding converting loans to grants for businesses that cannot achieve sustained profitability? Upon what criteria are these decisions based? For what period of time does the Metroplex commit to providing ongoing financial support?
I agree with your assessment that the response to my correspondence is non-commital. If others believe that this cause is worthy of their support, each will need to submit their request, by mail or phone, to the Mr. Madej, Chief Examiner. His contact information is available in the letter posted above.
I agree...NON COMMITTAL! We should all sign a petition-like letter and send it on!
Due to recent budget cuts and the rising cost of electricity, gas, and oil, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.
If anyone is interested in contacting Mr. Madej of the State Comptroller's Office - Office of Local Government & School Accountability, the contact information, including an email address is provided below.
ALBANY REGIONAL OFFICE Kenneth Madej, Chief Examiner Office of the State Comptroller 22 Computer Drive West Albany, New York 12205-1695 (518 ) 438-0093 | Fax (518 ) 438-0367 Email: Muni-Albany@osc.state.ny.us Serving: Albany, Columbia, Dutchess, Greene, Schenectady, Ulster counties
To date, the results of the poll asking if the New York State Office of the State Comptroller should perform an independent and comprehensive audit of the finances and operations of the Schenectady Metroplex Development Authority are:
Yes: 18 (94.7%)
Undecided: 1 (5.3%)
No: 0 (0%)
The above totals represents the sums of the votes made at both the schenectadyny.info and the rotterdamny.info web sites.
After 10 years, it’s time for independent audit of Metroplex
With the 10th anniversary of the Schenectady Metroplex Development Authority [Metroplex] in 2008, an independent and comprehensive audit of the Metroplex by the New York State Offi ce of the State Comptroller’s Office of Local Government and School Accountability is required to ensure the accountability of expenditures of public revenues and to provide transparency to the operations of the organization. The creation of the Metroplex was prompted by the Schenectady 2000 project, an effort that began in the early 1990s to revitalize Schenectady. The economic development agency uses a portion of the county sales tax receipts to promote private investment. The Daily Gazette has published many articles that address development planned for the city of Schenectady. Most of the plans include financing, in the form of grants and no or low-interest loans awarded by Metroplex. While I make no accusations or claims of impropriety by those on the Metroplex board of directors and administrative staff, there are many residents who share my questions and concerns about the application process, the criteria for funding decisions, the distribution of funds to the various municipalities of Schenectady County, and, most importantly, the return on the taxpayers’ investment of public revenues to finance private businesses. Though the results of self-directed annual audits of Metroplex and other information are available at the organization’s Web site (www.schenectadymetroplex.org), an independent and comprehensive audit by the New York State Comptroller’s Office will provide full and impartial disclosure of the organization’s operations to the taxpaying residents of Schenectady County. BRAD LITTLEFIELD Delanson
Brad, as the residents who are paying for all of the Metroplex's decisions they don't believe we have the right to question their decisions. After all they think that they have to think for us as we can't think for ourselves and they know what's best for us. Until the people who are paying for all these loans and handouts stand up and scream enough is enough it'll continue to be business as usual.
Quoted from shadow: Until the people who are paying for all these loans and handouts stand up and scream enough is enough it'll continue to be business as usual.
Shadow,
I agree with your assertion. I have stood up by writing letters to the NYS Comptroller's office and to the Editor of the Daily Gazette. I understand that others have also written letters to the state Comptroller's office. I would ask that if you and others agree with my position on this issue, that you stand with me. Write a short Letter the Editor of the Daily Gazette referencing my letter (published today) and stating your position.
Quoted from JoAnn: ... I will be anxiously awaiting a respond from Mr. Gillen or others in the Metroplex Authority.
I fully expect there to be a response from Gillen that states that there is no need for the requested audit and that anyone who has questions/concerns can contact him. This response will, of course, not satisfy my request for an independent, impartial, and comprehensive review of the organizations finances and operations.
It's been obvious for quite some time now that the County Council and Metroplex really doesn't want us to know what they're doing and how they're spending the residents/taxpayers money.
Thank You. The following information has been submitted:
Form submitted on Tue Jan 15 12:28:23 2008
Personal Information: Mr Bradley Littlefield 197 Eaton Corners Road Delanson, NY 12053 Phone: 518-XXX-XXXX Email: XXXXXXXX
Comments: Dear Attorney General Cuomo,
In early December 2007, I penned a letter to the New York State Office of the State Comptroller's office requesting that an independent and comprehensive audit of the operations and the finances of the Schenectady Metroplex Developement Authority (a public authority) be performed by the state. I spoke w/ Mr. Kenneth Madej who informed me that a state audit has never been conducted of the "Metroplex" since it's inception ten years ago, despite the law that stipulates that public authorities must be audited by the state at a minimum of once in every five years.
As the highest law enforcement authority in New York State and an advocate for consumers and residents, I ask that you investigate and determine why the Metroplex has apparently been exempt from the provisions of the law regarding the auditing of public authorities. Many of the taxpaying residents of Schenectady County share my questions and concerns about the application process, the criteria for funding decisions, the awarding of public revenues in the form of grants to private citizens, the distribution of funds to the various municipalities of Schenectady County, and, most importantly, the return on the taxpayers investment of public revenues to finance private businesses.
I thank you in advance for the courtesy of your reply.
Respectfully,
Brad Littlefield
-------------------------------------------------------------------------------- Return to the Office of the Attorney General's Home Page
I submitted, by web post, the correspondence above to New York State Attorney General Cuomo. Confirmation of the receipt of my correspondence was acknowledged by email (below). I believe that it is time to escalate the question/issue as no satisfactory response has been received to date from the New York State Office of the State Comptroller. I will post any response that I receive from the Attorney General's office.
Quoted Text
From: webmaster@smtpgw.oag.state.ny.us To: XXXXXXX Subject: Comments to AG from Web Site Date: Jan 15, 2008 12:28 PM Hi Bradley,
Thank you for sending your comment to the Attorney General.
This is an automatic confirmation of your e-mail to us. Please do not respond to this message.
We received your message on Tue Jan 15 12:28:23 2008
Metroplex critic doesn’t know what he’s talking about
This is in response to Brad Littlefield’s Jan. 8 letter asking for an audit of Metroplex by the state comptroller’s office. Each year Metroplex conducts an annual audit, which is submitted to the comptroller’s office for review. Copies are also submitted to the state and county legislatures, and they are also posted at our Web site at http://www.schenectadymetroplex.org Metroplex is covered by the Public Authorities Accountability Act. All board meetings are open to the public and are broadcast on Channel 16. All projects that involve a commitment of more than $500,000 in funding require a public hearing. All contracts above $25,000 require approval by the board in public session. While board Chairman Ray Gillen is authorized to approve contracts for less than $25,000, he has made it a practice to submit all contracts to the board for approval. Metroplex also must maintain excellent finances as we are rated by credit agencies. We have a current bond rating of A. For many years, Schenectady operated with a private economic development group that had no audited financials and very little accountability. I know, as I was a member of the board of that group, and resigned my board seat over concerns about the direction of the organization. This private group is no longer the lead agency in economic development. Metroplex is a major partner in a county economic development team that is accountable, results-oriented and successful. BRADLEY G. LEWIS Schenectady The writer is vice chairman of the Metroplex board and is an economics professor at Union College.
I want to first say that I think the Gazette could have chosen other words to title this article.
And with that said, I have a question. Do all Authorities, such as the Thruway Authority have to follow the same guidelines? Such as what Mr. Lewis stated:
Quoted Text
Each year Metroplex conducts an annual audit, which is submitted to the comptroller’s office for review. Copies are also submitted to the state and county legislatures, and they are also posted at our Web site at http://www.schenectadymetroplex.org
If the Thruway Authority has submitted the same annual audits,, they were still subject an external audit. Wouldn't this be true for the Metroplex as well?
An audit by the organization and submitted to the state is the same as having the fox guard the hen house or the PBA investigating the police department.
Mr. Lewis failed to comprehend the statements contained in my Letter to the Editor of the Daily Gazette which included one in which I acknowledged that there are self-directed annual audits of the Metroplex. He doesn't agree that an independent and comprehensive audit conducted by the New York State Comptroller's office, that provides full accountability of the operations and the finances of the Schenectady Metroplex Development Authority (of which he is vice chairman) is not only in the interests of the tax paying residents of Schenectady County, but is also required by the law that governs state audits of public authorities.
I had expected a letter to be written by Metroplex Chairman Gillen and published by the Daily Gazette. I guess that another insider on the Metroplex board was delegated the task. Mr. Lewis doth protest too much. Is he concerned about what an audit by the New York State Office of the State Comptroller may reveal?
I'm sure that the Thruway Authority does the same thing as the Metroplex in regards to their own internal audit and YET the Thruway Authority was audited. We are just asking, as taxpayers for a state audit. Now is that really too much to ask for in this great overtaxed state we live in? And besides, that is the job of the Comptroller and the Attorney General. That's what we pay them to do!
Due to recent budget cuts and the rising cost of electricity, gas, and oil, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Board of Directors SchenectadyMetroplex Development Authority
We have audited the accompanying statements of net assets of Schenectady Metroplex Development Authority(a New York public benefit corporation) as of December 31, 2006and 2005, and the related statements of revenues, expenses, and changes in net assets, and cash flows for the years then ended. These financial statements are the responsibilityof the Authority’s management. Our responsibilityis to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SchenectadyMetroplex Development Authorityas of December 31, 2006 and 2005, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Management’s Discussion and Analysis on pages 2 through 7is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it.
Bollam, Sheedy, Torani & Co. LLP Albany, New York June25, 2007
Due to recent budget cuts and the rising cost of electricity, gas, and oil, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.
Metroplex critic doesn’t know what he’s talking about
This is in response to Brad Littlefield’s Jan. 8 letter asking for an audit of Metroplex by the state comptroller’s office. Each year Metroplex conducts an annual audit, which is submitted to the comptroller’s office for review. Copies are also submitted to the state and county legislatures, and they are also posted at our Web site at http://www.schenectadymetroplex.org Metroplex is covered by the Public Authorities Accountability Act. All board meetings are open to the public and are broadcast on Channel 16. All projects that involve a commitment of more than $500,000 in funding require a public hearing. All contracts above $25,000 require approval by the board in public session. While board Chairman Ray Gillen is authorized to approve contracts for less than $25,000, he has made it a practice to submit all contracts to the board for approval. Metroplex also must maintain excellent finances as we are rated by credit agencies. We have a current bond rating of A. For many years, Schenectady operated with a private economic development group that had no audited financials and very little accountability. I know, as I was a member of the board of that group, and resigned my board seat over concerns about the direction of the organization. This private group is no longer the lead agency in economic development. Metroplex is a major partner in a county economic development team that is accountable, results-oriented and successful. BRADLEY G. LEWIS Schenectady The writer is vice chairman of the Metroplex board and is an economics professor at Union College.
Ladies and Gentlemen.......Please...... Do not pay any attention to the man behind the curtain.
"Broad-minded is just another way of saying a fellow is too lazy to form an opinion."-Will Rogers-
No...Mr. Lewis is hiding behind his titles...vice chairman of the Metroplex board and is an economics professor at Union College. Bollam, Sheedy, Torani & Co. LLP do not actually 'audit' the Metroplex. They just put the information given to them BY the Metroplex into an audit format and submit it to the proper authorities. As taxpayers and as Brad has stated, the taxpayers are just requesting an independent audit by the state. Just like they did for the Thruway authority.
Due to recent budget cuts and the rising cost of electricity, gas, and oil, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.
May I also say that there are incentives for 'new' businesses to open up shop in certain areas of Schenectady County. They are called 'Empire Zones'. This was put into place to give new business a tax break if they located in those areas. Well we all know that the Rotterdam Industrial Park is one which did benefit the town with the Railex and the Price Chopper Freezer and Fedex.
But what about the downtown area of Schenectady? I believe that is also considered an Empire Zone. Now Villa Italia moved out of Rotterdam and 're-located' their already lucrative business to Broadway in Schenectady. Villa Italia is considered to be in this Empire Zone now which allows them the tax breaks. The Golub Office complex will be doing the same thing when they move to their new location in Schenectady.
So what is going on, is that successful, long standing businesses that have been contributing 100% to the tax base are now being lured to the downtown area specifically for the tax break. Hence, actually losing tax money. So can someone explain the rational to me? Aren't we really just robbing Peter to pay Paul, so to day? I may be seeing this in the wrong light and need some correction.
Due to recent budget cuts and the rising cost of electricity, gas, and oil, The Light at the End of the Tunnel has been turned off. We apologize for the inconvenience.
So what is going on, is that successful, long standing businesses that have been contributing 100% to the tax base are now being lured to the downtown area specifically for the tax break. Hence, actually losing tax money. So can someone explain the rational to me? Aren't we really just robbing Peter to pay Paul, so to day? I may be seeing this in the wrong light and need some correction.
They don't care about Peter if they can show that Paul is doing so much better. And guess what...Peter's broke. (30,000 people with Peter's broke.) Oh well, at least Paul's doing good.
I would welcome any of you who disagree with Mr. Lewis's assertions and who support my call for the New York State Comptroller's Office to perform an independent and comprehensive audit of the Schenectady Metroplex Development Authority to write a Letter to the Editor of the Daily Gazette. The point that several of you have made regarding the NYS Thruway audit by the Comptroller's office as being similar is valid. Why is the Metroplex exempt from the state law that requires public authorities to be audited at a minimum of once every five years? (I was told of this law by someone in government, I will have to find the exact legislation). Self-directed audits are, as Shadow contends, "the same as having the fox guard the hen house".
It is interesting that the louder the outcry by the public becomes in support of the Metroplex audit and the more pressure that is brought upon the government to conduct the audit, the more defensive those on the Schenectady Metroplex Development Authority become. Is there a reason for concern on their parts? If not, would they not welcome the audit as a chance to show the public that the organization is being run efficiently and in accordance with the law?
It is unfortunate that the two daily newspapers in the Capital District do not have any legitimate investigative journalists. Those who cover Schenectady County simply present the views, statements, and opinions of the Democratic majority in local government. They act as cheerleaders for the current government rather than public advocates.
Is there a reason for concern on their part? If not, would they not welcome the audit as a chance to show the public that the organization is being run efficiently and in accordance with the law?
Because you are treading on sacred ground where no one has gone before. In part it boils down to a "how dare you question THE AUTHORITY".
This scene reminds me of "The Wizard" Ray Gillen, and Schenectady is his Oz. Dorothy, Tin Man, and Scarecrow represent the Schenectady(Oz) county residents. The Cowardly Lion represents our newspapers.
"Broad-minded is just another way of saying a fellow is too lazy to form an opinion."-Will Rogers-
In reply to Bradley Lewis’ Feb. 1 letter, I would ask Mr. Lewis (and more to the point, the head of Schenectady Metroplex, Ray Gillen) the following: If, as stated in Mr. Lewis’ letter, “Metroplex is a major partner in a county economic development team that is accountable, results-oriented and successful,” and Metroplex is doing so well and on the right path, what does the Metroplex have to lose by having an outside entity auditing this entity, besides comforting Schenectady County taxpayers? Mr. Lewis also stated, “For many years Schenectady operated with a private economic development group that had no audited financials and very little accountability.” Mr. Lewis, how much accountability does Metroplex have? Why not put Metroplex’s taxpayerfunded money where its mouth is? Allow an open audit of the records by an outside source, namely New York state (as recommended by Brad Littlefield’s Jan. 8 letter). KEVIN MARCH Rotterdam
Good letter. Those who support the call for an independent and comprehensive audit of the Schenectady Metroplex Development Authority by the New York State Comptroller's Office need to continue the pressure by writing Letters to the Editor of the Daily Gazette and Times Union, contacting the Comptroller's Office, NYS Attorney General, and the Governor and by calling into the local talk radio stations when discussion pertains to Schenectady County.
One person alone cannot champion a cause. I commend those of you, like Kevin, who have given of yourselves in working to ensure integrity in government and to make Schenectady County a better place to live.
Logged
xxx-xxxx or in writing to the above address.
