April 22, 2021
WLEA STAFF REPORTS
HORNELL — The Hornell Industrial Development Agency (CHIDA) and Hornell Industrial Development Corporation (HIDC) received a clean bill of financial health during a meeting of the Board of Directors on Thursday.
Tom Zuber of Mengel, Metzger and Barr delivered the annual audit and provided executive summaries that were a snapshot of the organizations’ liabilities, assets and net positions as of Dec. 31, 2020.
Generally, the audit revealed that CHIDA had no material weaknesses or deficiencies in financial practices, was free of misstatements and records were reflective of the organization’s true standing.
CHIDA Net Assets: $6.5 million
Net Position: $5.8 million
Liabilities were attributed to deferred rent from Alstom and a loan with Iron Horse – ownership of the railroad depot, remaining at roughly $150,000. Total liabilities were up $209,000 from the previous year. Expenditures for additional staff and consulting fees also contributed to the liabilities.
CHIDA also allocated $250,000 to the Industrial Development Corporation for the administration of a local business loan program for businesses suffering under COVID-19 restrictions.
Revenues were consistent, but down slightly due to changes in rental collections and deferred.
Variances in receivables were noted as being related to PILOT payments from ALSTOM – some of which came in after the end of the year audited. Deferred in and out flows included NYS retirement and pension system – including unfunded obligations.
Internal control recommendations urged improved timesheets for staff and the use of signature stamps, which the auditor called “extraordinarily minor”, and were noted in the provided corrective action plan.
The audit was unanimously accepted.
The Hornell Industrial Development Corporation (HIDC), the for-profit arm of the organization, also received an opinion of “no material weakness” and no findings were made regarding internal controls.
HIDC held a cash position of $155,000 and $395,152 in unrestricted net assets, up $206,000 from the previous year.
While much less active than the CHIDA, HIDC had a major impact on the community in activity resulting from COVID-19 pandemic support, administering a loan program to local businesses resulting in 22 loans.
“It’s amazing how well people have repaid their loans, some are paying in advance and I’m very satisfied. It’s worked out really well,” said IDA CEO Jim Griffin.