N.Y. General Municipal Law § 859: Financial records

§ 859. Financial records. 1. (a) Each agency shall maintain books and

records in such form as may be prescribed by the state comptroller.

(b) Within ninety days following the close of its fiscal year, each

agency or authority shall prepare a financial statement for that fiscal

year in such form as may be prescribed by the state comptroller. Such

statement shall be audited within such ninety day period by an

independent certified public accountant in accordance with government

accounting standards established by the United States general accounting

office. The audited financial statement shall include supplemental

schedules listing all straight-lease transactions and bonds and notes

issued, outstanding or retired during the applicable accounting period

whether or not such bonds, notes or transactions are considered

obligations of the agency. For each issue of bonds or notes such

schedules shall provide the name of each project financed with proceeds

of each issue, and whether the project occupant is a not-for-profit

corporation, the name and address of each owner of each project, the

estimated amount of tax exemptions authorized for each project, the

purpose for which each bond or note was issued, date of issue, interest

rate at issuance and if variable the range of interest rates applicable,

maturity date, federal tax status of each issue, and an estimate of the

number of jobs created and retained by each project. For each

straight-lease transaction, such schedules shall provide the name of

each project, and whether the project occupant is a not-for-profit

corporation, the name and address of each owner of each project, the

estimated amount of tax exemptions authorized for each project, the

purpose for which each transaction was made, the method of financial

assistance utilized by the project, other than the tax exemptions

claimed by the project and an estimate of the number of jobs created and

retained by each project.

(c) Within thirty days after completion, a copy of the audited

financial statement shall be transmitted to the commissioner of the

department of economic development, the state comptroller and the

governing body of the municipality for whose benefit the agency was

created.

(d) An agency with no bonds or notes issued or outstanding and no

projects during the applicable accounting period may apply to the state

comptroller for a waiver of the required audited financial statement.

Application shall be made on such form as the comptroller may prescribe.

(e) If an agency or authority shall fail to file or substantially

complete, as determined by the state comptroller, the financial

statement required by this section, the state comptroller shall provide

notice to the agency or authority. The notice shall state the following:

(i) that the failure to file a financial statement as required is a

violation of this section, or in the case of an insufficient financial

statement, the manner in which the financial statement submitted is

deficient;

(ii) that the agency or authority has thirty days to comply with this

section or provide an adequate written explanation to the comptroller of

the agency's or authority's reasons for the inability to comply; and

(iii) that the agency's or authority's failure to provide either the

required financial statement or an adequate explanation will result in

the notification of the chief executive officer of the municipality for

whose benefit the agency or authority was created of the agency's

noncompliance with this section. Where such agency or authority has

failed to file the required statement, the comptroller shall

additionally notify the agency or authority that continued failure to

file the required statement may result in loss of the agency's or

authority's authority to provide exemptions from state taxes.

(iv) If an agency or authority after thirty days has failed to file

the required statement or the explanation in the manner required by

subparagraph (i) of this paragraph, or provides an insufficient

explanation, the comptroller shall notify the chief executive officer of

the municipality for whose benefit the agency or authority was created

and the agency of the agency's or authority's noncompliance with this

section. Such notice from the state comptroller shall further delineate

in what respect the agency or authority has failed to comply with this

section. If the agency or authority has failed to file the required

statement, the notice shall additionally state that continued failure to

file the required statement may result in loss of the agency's or

authority's authority to provide exemptions from state taxes.

(v) If, thirty days after notification of the chief executive officer

of the municipality for whose benefit the agency or authority was

created of the agency's or authority's noncompliance, the agency or

authority fails to file the required statement, the comptroller shall

notify the chief executive officer of the municipality for whose benefit

that agency or authority was created and the agency or authority that if

such report is not provided within sixty days, that the agency or

authority will no longer be authorized to provide exemptions from state

taxes.

(vi) If, sixty days after the notification required by subparagraph

(v) of this paragraph, the comptroller has not received the required

statement, the agency or authority shall not offer financial assistance

which provides exemptions from state taxes until such financial

statement is filed and the comptroller shall so notify the agency or

authority and the chief executive officer of the municipality for whose

benefit the agency was created. Provided, however, that nothing

contained in this paragraph shall be deemed to modify the terms of any

existing agreements.

(f) Within thirty days after completion, a copy of an audited

financial statement which contains transactions of or bonds or notes of

civic facilities as defined in paragraph (b) of subdivision thirteen of

section eight hundred fifty-four of this article, shall be transmitted

by the agency to the commissioner of health, the chair of the senate

finance committee, the chair of the assembly ways and means committee,

the chair of the senate health committee and the chair of the assembly

health committee.

2. On or before September first of each year, the commissioner of the

department of economic development shall prepare and submit to the

governor, speaker of the assembly, majority leader of the senate, and

the state comptroller, a report setting forth a summary of the

significant trends in operations and financing by agencies and

authorities; departures from acceptable practices by agencies and

authorities; a compilation by type of the bonds and notes outstanding; a

compilation of all outstanding straight-lease transactions; an estimate

of the total number of jobs created and retained by agency or authority

projects; and any other information which in the opinion of the

commissioner bears upon the discharge of the statutory functions of

agencies and authorities.

3. On or before April first, nineteen hundred ninety-six, the

commissioner shall submit to the director of the division of the budget,

the temporary president of the senate, the speaker of the assembly, the

chairman of the senate finance committee, the chairman of the assembly

ways and means committee, the chairman of the senate local government

committee, the chairman of the senate committee on commerce, economic

development and small business, the chairman of the assembly committee

on commerce, industry and economic development, the chairman of the

assembly local governments committee and the chairman of the assembly

real property taxation committee an evaluation of the activities of

industrial development agencies and authorities in the state prepared by

an entity independent of the department. Such evaluation shall identify

the effect of agencies and authorities on: (a) job creation and

retention in the state, including the types of jobs created and

retained; (b) the value of tax exemptions provided by such agencies and

authorities; (c) the value of payments received in lieu of taxes

received by municipalities and school districts as a result of projects

sponsored by such entities; (d) a summary of the types of projects that

received financial assistance; (e) a summary of the types of financial

assistance provided by the agencies and authorities; (f) a summary of

criteria for evaluation of projects used by agencies and authorities;

(g) a summary of tax exemption policies of agencies and authorities; and

(h) such other factors as may be relevant to an assessment of the

performance of such agencies and authorities in creating and retaining

job opportunities for residents of the state. Such evaluation shall also

assess the process by which agencies and authorities grant exemptions

from state taxes and make recommendations for the most efficient and

effective procedures for the use of such exemptions. Such evaluation

shall further include any recommendations for changes in laws governing

the operations of industrial development agencies and authorities which

would enhance the creation and retention of jobs in the state.