Purpose of Audit:
The purpose of our audit was to evaluate the IDA’s project monitoring practices for the period January 1, 2012 through April 30, 2014.
The Fulton County Industrial Development Agency was created in 1970 to further economic development in the County. The Agency is governed by a Board of seven members appointed by the Fulton County Board of Supervisors. During 2012, the Agency reported 11 active projects.
Seven of the eight payment in lieu of taxes (PILOT) agreements that were active during our audit period did not have a recapture clause to recover benefits from the businesses if they did not meet their projected goals.
The Agency does not have a process for taking action when businesses fail to make PILOT payments.
Ensure that new project agreements contain a recapture clause allowing the Agency to recover financial benefits, as appropriate, if a business does not meet job creation or retention expectations or if other terms of the agreement are not met.
Implement policies and procedures to ensure that PILOT payments are timely and accurate and take action when payments are not made.