The village of Waterford Local Development Corp. is being reprimanded for not meeting accountability and disclosure requirements from the state.
The state Authorities Budget Office censured the development corporation in a letter on Oct. 2, which was sent to village Mayor J. Bert Mahoney, who also chairs the corporation. The reprimand comes after the corporation failed to file audit reports for 2010, 2011 and 2012 and didn’t file annual reports for 2011 and 2012.
“This letter of censure is the result of the board’s collective failure to take appropriate corrective action when the authority was previously warned that it was out of compliance,” wrote state Authorities Budget Office Director David Kidera.
View censure letter
The Capital Region Scene has the censure letter and it can be seen by clicking HERE.
According to his letter, the corporation was notified in August of its repeated failures, which are a violation of the Public Authorities Law. The corporation responded on Sept. 4 that it was in compliance with its duties, but Kidera said a few days later that this wasn’t correct and that it had until Oct. 1 to correct the problem.
“As of October 1, 2012 the Village of Waterford Local Development Corporation remains out of compliance with the public disclosure, reporting and corporate governance provisions of Public Authorities Law,” Kidera wrote in his censure letter.
He went on to write that the ABO’s previous warnings serve as evidence that the Waterford corporation was properly notified of its responsibilities.
“The fact you continue to ignore your legal obligations is unacceptable,” Kidera wrote. “This behavior demonstrates a fundamental misunderstanding of your fiduciary responsibilities and is a serious violation of your duty as a director or officer of this authority.”
The letter concludes that if the corporation doesn’t come into compliance with its reporting obligations, the ABO could take additional steps, including legal actions that would allow access to records and financial documents.