A new report by the New York State Authorities Budget Office found members of the Broome County Industrial Development Agency made credit card purchases for alcohol, gifts and meals, went on travels without receiving pre-authorization and following cost caps and failed to follow its own policies.
The compliance review also reports credit card purchases lacking itemized receipts, and its employees, including the IDA’s financial comptroller, marketing and communications manager, administrative support specialist and executive assistant, were loaned to the Greater Binghamton Chamber of Commerce.
The report concludes the IDA’s board of directors did not provide adequate oversight of its financial operations or executive management.
“There were multiple instances where the Board abdicated its responsibilities to executive management without proper oversight of procurement and expense reimbursements,” the report states. “The Board did not follow some of its own policies and did not have a discretionary spending policy. The Board’s lack of oversight increased the risk that inappropriate and questionable discretionary spending was undertaken, and unauthorized and unnecessary expenses were made.”
In a more than eight-page response, James Peduto, chair of the IDA Board of Directors, said it had implemented changes due to the findings, but took exception with how the information was presented and made the agency look.
“Presenting paperwork and recordkeeping errors out of context, mixing opinion with facts and drawing misplaced conclusions is unnecessary and creates a misleading report that serves no legitimate purpose,” he stated.
The state Authorities Budget Office (ABO) provides oversight of hundreds of public-benefit corporations, including IDAs and authorities. For the report, it reviewed the operations and management of the Broome County Industrial Development Agency (BCIDA), and, to a lesser extent, the Broome County Local Development Corporation’s (BCLDC), from Jan. 1, 2022, to June 30, 2025.
The report found IDA credit card purchases totaling about $50,000 for personal use and outside entities, alcohol, gifts and meals.
“Based on the 597 itemized receipts available for the sample, 317 receipts totaling $49,943 included charges to BCIDA credit card for food and drinks,” the report sates.
The ABO says credit card statements and expense reports for the executive director included eight out-of-state trips with expenses totaling over $32,000, including over $9,000 for a trip to California. It also cites two out-of-country trips by the executive director costing over $16,500.
The IDA’s operating revenue in 2024 was $2 million, of which $1.8 million came through fees, according to the ABO.
Peduto said during the review period, the agency added close to $93 million in direct new revenue, creation of more than 678 new jobs and close to $1.2 billion in new investment.
He said there is no law or IDA policy prohibiting alcoholic or non-alcoholic beverage purchases, and all alcohol purchases “were related to and used in the conduct of BCIDA business to advance its mission.”
He said the board chair pre-authorizes and approves all travel by the executive director.
The IDA said eight out-of-state trips and two international trips were funded by a private grant that reimbursed the expenses, but the ABO says the IDA did not receive any private grants during the review period for the travel-related expenses included in the report.
In response to the report, the IDA agreed to make changes to clarify that per-diem rates for lodging and meals cover the location of the event and trip being taken and require travel be approved in writing; adopted a discretionary spending policy; agreed to a process and criteria for providing employee bonuses and make updates to its internal controls; eliminating the use of expense reimbursements to offset personal expenses; develop expense tracking sheets; pledged to examine and discuss the relationship with the Greater Binghamton Chamber of Commerce about the loaning of staff; and more.