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Herkimer IDA accepts audit; auditors brief board on LDC startup costs and county loan terms
Summary
Auditors presented a clean opinion on the IDA and the new Local Development Corporation (LDC) financials, noted lease accounting and a new zero‑percent note from Herkimer County; the board approved required reports and policies and agreed to vote on the LDC financials at the next meeting.
The Herkimer County Industrial Development Agency on the meeting heard its independent auditors give an unmodified (clean) opinion on the agency’s 2024 financial statements and reviewed the first-year financials of a newly formed Local Development Corporation.
Jen Wach, the lead auditor, and partner Liz Bush presented the audit and highlighted key items including accounting adjustments required by GASB standards, a reported $85,000 grant receivable tied to the Eastern Mohawk Valley water transmission main project, and a $6.6 million net capital-asset total. Wach said auditors recorded a noncash loss on disposal of about $623,000 after cleaning up the fixed-asset listing.
The auditors also explained lease accounting under GASB 87 for a newly recorded Amazon parking‑lot lease shown on the books as a long-term lease receivable and corresponding lease liability. Wach said “the opinion is an unmodified opinion,” and described routine adjustments for GASB 68 (pensions) and GASB 75 (other post‑employment benefits).
Board members discussed a May 2023 agreement that took effect in 2024: a $1.2 million, 0% note from Herkimer County that the agency will repay from rental income or sales of purchased properties. Liz Bush told the board the note’s repayment terms are disclosed in the long-term debt footnote.
The auditors said the IDA moved LDC start-up costs to the LDC financial statements because the LDC is funded by the IDA. The LDC’s first-year statements showed limited activity, a decrease in net assets of $57,000 and roughly $129,000 capitalized as site-development work in progress for the Masonic property (asbestos abatement and cleanup costs were cited).
The board voted to approve the required public-authorities investment compliance report, the agency’s investment policy, procurement policy and related narrative documents that must be filed (motion approved by unanimous voice vote). Members agreed to vote on formally accepting the LDC audited statements at the LDC portion of the meeting, to be finalized after the IDA vote.
Board members and staff discussed presentation format and comparative reporting going forward; the auditors said governmental financial statements commonly present a single year and that comparative presentations are possible for future meetings.
The audit presentation and the policies now will be posted with final audit copies; the LDC audit will be taken up during the LDC meeting portion for a separate vote.
