Troy Industrial Development Authority

Board Members Chair Susan Farrell Jeff Betts Elbert Watson Vice Chair Stephanie Fitch Latasha Gardner Executive Director Alex Carlton Hon. Sue Steele Hon. Ryan Brosnan AUDIT & FINANCE COMMITEE MEETING MARCH 27, 2024 10:00 a.m. I. Approval of Minutes from the March 24, 2023 committee meeting. II. 2023 Audit Presentation – Wojeski & Co., CPAs III. Adjournment City Hall – 433 River Street, Suite 5001, Troy, New York 12180 Phone: 518.279.7166  March 24, 2023 10:18 AM Audit and Finance Committee Meeting Minutes Present: Susan Farrell, Hon. Sue Steele, Elbert Watson, Latasha Gardner, Josh Chiappone Stephanie Fitch and Jeff Betts. Absent: Hon. Jim Gulli Also in attendance: Steven Strichman, Cathryn Crummey, Matt Jones, Deanna Dal Pos and Denee Zeigler. I. D Minutes R The board reviewed the minutes from October 28, 2022. Motion to approve the minutes from the October 28, 2022 audit and finance committee meeting – Susan Farrell T Second – Josh Chiappone Approved II. AF Audit Presentation by Wojeski & Co. Chris Stephens presented the deliverables of the cy2022 audit completed by his team at Wojeski & Co. He provided a summary of the overall process and two documents: Report to the Board and Financial Statements and Independent Auditor’s Report. Mr. Stephens went over the report to the board. He advised there were no significant difficulties in dealing with management in performing and completing the audit. Mr. Stephen noted an invoice did come in after the reporting was complete but has been resolved. Mr. Stephens went over the financial statements and presented the independent auditors report. He noted that this board received an unmodified, clean opinion. He advised that the bond statements and annual report that is part of the PARIS report was also reviewed. Mr. Stephens went over the report on internal controls and was happy to report no findings. Susan Farrell made a motion to approve the cy2022 audit as presented By Wojeski & Co. Elbert Watson seconded the motion, motion carried. 1 III. Adjournment With no additional business to discuss, the CRC audit and finance committee board meeting was adjourned at 10:39 a.m. Sue Steele made a motion to adjourn the CRC audit and finance committee board meeting at 10:39 a.m. Josh Chiappone seconded the motion, motion carried. D R T AF 2  TROY INDUSTRIAL DEVELOPMENT AUTHORITY Financial Statements, Supplementary Information, and Independent Auditors Report FT December 31, 2023 and 2022 DRA TROY INDUSTRIAL DEVELOPMENT AUTHORITY December 31, 2023 and 2022 Financial Statements Independent Auditor’s Report .............................................................................. 1 Statements of Net Position .................................................................................. 4 Statements of Revenues, Expenses and Change in Net Position ................................ 5 Statements of Cash Flows ................................................................................... 6 Notes to Financial Statements .............................................................................. 7 Compliance Report Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an FT Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................................................................... Supplementary Information 12 D Schedule I – Schedule of Supplemental Information – Straight Leases ..................... 14 RA  INDEPENDENT AUDITOR’S REPORT To the Board of Directors Troy Industrial Development Authority Troy, New York Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of Troy Industrial Development Authority (the "Authority") as of and for the years ending December 31, 2023 and 2022, and the related notes to the financial statements, which collectively comprise the Authority’s basic FT financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Authority as of December 31, 2023 and 2022, and the changes in financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. D Basis for Opinions RA We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Governmental Auditing Standards issued by the Controller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements,  FT whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of D expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed. RA  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, amount other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Required Supplementary Information Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not part of the basic financial statements, is required by the Government Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. 2 Supplementary Information Our audit was conducted for the purpose of forming an opinion on the basic financial statements as a whole. The supplementary information listed in the table of contents is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the Annual Report of the Authority as defined by Section 2800 of the New York State Public Authorities Law, Annual Reports by Authorities, but does not include FT the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other D information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our RA report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE on our consideration of the Authority's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control over financial reporting and compliance. Albany, New York DATE 3 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Statements of Net Position December 31, 2023 2022 ASSETS CURRENT ASSETS Cash and cash equivalents $ 745,696 $ 736,009 Restricted cash 29,670 - Accounts receivable 16,556 16,664 Prepaid expenses 1,935 1,812 TOTAL CURRENT ASSETS 793,857 754,485 NONCURRENT ASSETS Land held for sale or development LIABILITIES CURRENT LIABILITIES FT TOTAL ASSETS 80,000 873,857 80,000 834,485 D Accounts Payable Due to other governments RA NET POSITION Unrestricted TOTAL CURRENT LIABILITIES 572 46,226 46,798 827,059 - 16,664 16,664 817,821 TOTAL NET POSITION $ 827,059 $ 817,821 See accompanying notes to financial statements. 4 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Statements of Revenues, Expenses and Change in Net Position For the Year Ended December 31, 2023 2022 OPERATING REVENUES Administrative fees $ 368,651 $ 457,536 Rental income - 25,000 TOTAL OPERATING REVENUES 368,651 482,536 OPERATING EXPENSES Professional fees 246,083 144,308 Administrative support 125,000 100,000 Dues and memberships 5,083 2,050 Insurance 2,624 2,463 Other expenses 953 2,973 NON-OPERATING INCOME Gain on sale of asset Interest income FT TOTAL OPERATING EXPENSES OPERATING INCOME (LOSS) 379,743 (11,092) - 20,330 251,794 230,742 285,301 2,520 DRA CHANGE IN NET POSITION NET POSITION, beginning of year TOTAL NON-OPERATING INCOME NET POSITION, end of year $ 20,330 9,238 817,821 827,059 $ 287,821 518,563 299,258 817,821 See accompanying notes to financial statements. 5 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Statements of Cash Flows For the Year Ended December 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from administrative fees $ 368,759 $ 468,294 Payments to vendors (349,732) (240,406) NET CASH PROVIDED BY OPERATING ACTIVITIES 19,027 227,888 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of land held for development - 375,000 NET CASH PROVIDED BY CAPITAL AND RELATED FINANCING ACTIVITIES - 375,000 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from interest income FT NET CASH PROVIDED BY INVESTING ACTIVITIES NET INCREASE IN CASH, CASH EQUIVALENTS 20,330 20,330 2,520 2,520 DRA AND RESTRICTED CASH Cash, cash equivalents and restricted cash at beginning of year CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR $ 39,357 736,009 775,366 $ 605,408 130,601 736,009 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating income (loss) $ (11,092) $ 230,742 Changes in operating assets and liabilities: Accounts receivable 108 (14,242) Prepaid expenses (123) (661) Accounts payable 572 (2,193) Due to other governments 29,562 14,242 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 19,027 $ 227,888 See accompanying notes to financial statements. 6 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Notes to Financial Statements December 31, 2023 and 2022 NOTE A--AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Troy Industrial Development Authority (the "Authority") was created in 1967 by the New York State Legislature under the provisions of Chapter 759 of the 1967 Laws of New York State for the purpose of encouraging economic growth in the City of Troy, New York (the “City”). The Authority, although established by the State Legislature, is a separate public benefit authority and operates independently of the City. The Authority’s function is to authorize the issuance of industrial revenue bonds for industrial development projects and to assist businesses in acquiring or constructing various facilities in order to provide job opportunities and increase economic welfare. In return for its efforts, the Authority receives application and closing fees related to this business financing. FT Basis of Accounting and Financial Statement Presentation The Authority’s financial statements are prepared using the accrual basis in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. D The accounting and financial reporting treatment applied to the Authority is determined by its measurement focus. The transactions of the Authority are accounted for on a flow of economic RA resources measurement focus. With this measurement focus, all assets and liabilities associated with the operations are included on the statement of net position with revenues recorded when earned and expenses recorded when incurred. Net position is classified into three components – net investment in capital assets; restricted and unrestricted. These classifications are defined as follows: Net investment in capital assets: This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of bonds, notes, and other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are unspent debt proceeds at year end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of investment in capital assets, net of related debt. Rather that portion of the debt is included in restricted net position. Restricted net position: This component of net position represents external restrictions on net position imposed by creditors, grantors, contributors, laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation. Unrestricted net position: This component represents net position that does not meet the definition of "restricted". 7 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Notes to Financial Statements--Continued NOTE A--AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-- Continued When both restricted and unrestricted resources are available for use, it is the Authority’s policy to use restricted resources first, then unrestricted resources as needed. The Authority distinguishes operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services in connection with the Authority's principal on-going operations. All revenues and expenses that do not meet this definition are reported as non-operating revenues and expenses. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. FT Accordingly, actual results could differ from those estimates. Cash and Cash Equivalents The Authority considers as cash all demand deposits and all highly liquid investments which are readily convertible to cash. D Accounts Receivable Accounts receivable are non-interest bearing and are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability based on a review RA of outstanding receivables, historical collection information and current economic conditions. In the opinion of Authority management, all receivable balances are considered collectible; accordingly, no allowance for doubtful accounts has been recorded. Capital Assets Acquisitions of property and equipment and expenditures which materially change the capacities or extend the useful lives are capitalized and recorded at historical cost. Routine maintenance and repairs and minor replacement costs are charged to expense as incurred. When an asset is sold, or retired, the cost and accumulated depreciation are removed from their respective accounts and the resulting gain or loss is included in the change in net position. Depreciation expense is recorded using the straight-line method over the estimated useful lives of the related assets, generally ranging from 5 to 40 years. Land Held for Sale or Development Land held for sale or development is recorded at cost and is carried at the lower of cost or fair value. Major additions, renewals, and betterments are capitalized, whereas remediation, maintenance, and repair costs are expensed as incurred. When land held for development or resale is sold or otherwise disposed of, the appropriate accounts are relieved of costs and any resultant gain or loss is credited or charged to the change in net position. 8 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Notes to Financial Statements--Continued NOTE A--AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-- Continued Land Held for Development and Resale--Continued Recognition of impairment of land held for development and resale is required when events and circumstances indicate that an entity will not be able to recover the carrying amount of these assets. The Authority recognizes an impairment loss, equal to the amount by which the carrying amount of an asset exceeds its fair value, if the carrying amount of the asset is not recoverable. During the years ended December 31, 2023 and 2022, no impairment loss was recorded for land held for development and resale. Conduit Debt Obligations To further economic development in the county, the Authority has issued bonds that provide capital financing to private-sector entities for the acquisition and construction of facilities. The FT properties financed are pledged as collateral and the bonds are payable solely form payments from the private sector entities. In addition, no commitments beyond the collateral, the payments from the private sector entities, and maintenance of tax-exempt status of the conduit debt obligation were extended by the Authority. The bonds are not obligations of the Authority or the State of New York. Accordingly, the Authority does not record the assets or liabilities resulting from completed bond transactions in its accounts since its primary function D is to arrange financing between borrowing companies and bond holders, and funds arising from those transactions are controlled by trustees or banks acting as fiscal agents. For providing this service, the Authority receives project administration fees from the borrowing RA companies. Such administrative fee income is recognized immediately upon issuance of bonds. The outstanding balance on the bonds issued totaled $0 for each of the years ended December 31, 2023 and 2022. Payment in Lieu of Taxes (PILOT) The Authority enters into and administers PILOT agreements for various unrelated business entities located in the City. Under the terms of the PILOT agreements, title to property owned by the unrelated business entity is transferred to the Authority for a certain period of time. During the period in which the Authority holds title, the business entity pays a PILOT to the Authority based on a calculation defined by the specific agreement. The PILOTs allow the companies to make payments that are less than the property taxes that would be paid on the related property’s assessed value. Once the PILOT is received, the Authority remits the PILOT to the respective taxing authorities. Certain requirements, as defined by each agreement, are to be met by the company to be able to maintain its PILOT. These requirements, as stated in the PILOT agreement, can be comprised of reaching and maintaining certain employment goals and paying its PILOT in a timely fashion. At the completion of the PILOT, title to the property is transferred back to the third-party business owner, and the property goes back on the tax rolls. PILOT receipts and PILOT payments are accounted for as pass- through transactions and are not included in the revenues or expenses of the Authority. The Authority is responsible for collecting and remitting the funds. However, the taxing authorities bear the risk of loss if the PILOT payments are not paid to the Authority by the respective companies. Total pass-through PILOT payments were approximately $2,370,000 and $2,175,000 for the years ended December 31, 2023 and 2022, respectively. 9 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Notes to Financial Statements--Continued NOTE A--AUTHORITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-- Continued Income Taxes The Authority is exempt from Federal, State and Local income taxes. Adoption of New Accounting Pronouncements During the year ended December 31, 2023, the Authority implemented GASB Statements No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements; No. 96, Subscription-Based Information Technology Arrangements; and a portion of No. 99, Omnibus 2022. GASB Statement No. 94 improves financial reporting by addressing issues related to public-private and public-public partnerships arrangements (“PPPs”). GASB statement No. 96 improves financial reporting by establishing a definition for Subscription- Based Information Technology Arrangements (“SBITAs”) and providing uniform guidance for FT accounting and financial reporting for transactions that meet that definition. GASB Statement No. 99 enhances comparability in the application of accounting and financial reporting requirements and improves the consistency of authoritative literature related to GASB Statements No.94 and 96. The implementation of GASB Statements No. 94, 96, and a portion of 99 did not have a material impact on the Authority’s financial position or results from operations. D Subsequent Events The Authority evaluates transactions that occur subsequent to year end for potential RA recognition or disclosure in the financial statements through the date on which the financial statements are available to be issued. The financial statements were available to be issued on DATE. NOTE B--CASH AND CASH EQUIVALENTS The Authority’s investment policies are governed by New York State statutes and its own written investment policy. The Authority is authorized to use demand deposit accounts, money market accounts, and certificates of deposit. Permissible investments include obligations of the U.S. Treasury and those of New York State and its municipalities and school districts. All cash of the Authority is maintained in accounts covered by the Federal Deposit Insurance Corporation (FDIC). In accordance with state law, collateral is required for demand deposits and certificates of deposit not covered by FDIC insurance. The Authority’s uninsured deposits are collateralized by accounts held by the pledging financial institution agent in the Authority’s name. There were approximately $517,000 in uninsured deposits for the year ended December 31, 2023. 10 TROY INDUSTRIAL DEVELOPMENT AUTHORITY Notes to Financial Statements--Continued NOTE C--LAND HELD FOR SALE OR DEVELOPMENT Land held for resale or development activity is as follows for the years ended December 31, 2023 and 2022: Beginning Ending Balance Additions Subtractions Balance December 31, 2023 $ 80,000 $ - $ - $ 80,000 Beginning Ending Balance Additions Subtractions Balance December 31, 2022 $ 287,000 $ - $ (207,000) $ 80,000 NOTE D--BOARD DESGINATED NET POSITION FT During 2018, the Board approved and designated funds up to $61,700 for design services related to the Troy Wayfinding System project that will help assist with parking, visitors and overall connectivity in the City of Troy. As of December 31, 2023, these funds have not been expended. D NOTE E--RELATED PARTY TRANSACTIONS RA City of Troy In accordance with an agreement between the Authority and the City, the Authority reimburses the City annually for services and support personnel provided to the Authority during the year. The annual charge for these services was $125,000 and $100,000 for the years ended December 31, 2023 and 2022, respectively. Troy Capital Resource Corporation The Authority’s current Board of Directors is the same as that of the Troy Capital Resource Corporation (Troy CRC). Troy Local Development Corporation The Authority and the Troy Local Development Corporation (TLDC) have entered into a fee sharing agreement. Under the agreement, the IDA will provide TLDC a portion of the administration fee for board approved projects that include TLDC involvement. There were no administration fees paid to TLDC pursuant to this agreement during the years ended December 31, 2023 and 2022. 11  COMPLIANCE REPORT FT DRA  INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Board of Directors Troy Industrial Development Authority Troy, New York FT We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Troy Industrial Development Authority (the "Authority"), which comprise the statement of net position as of December 31, 2023, and the related statements of revenues, expenses, and changes in net position and cash flows for the year ended, and the related notes to the financial statements, and have issued our report thereon dated DATE. D Report on Internal Control Over Financial Reporting RA In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 12 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Albany, New York DATE FT DRA 13  SUPPLEMENTARY INFORMATION FT DRA  TROY INDUSTRIAL DEVELOPMENT AUTHORITY Report to the Board of Directors For the Year Ended December 31, 2023 FT DRA DATE To the Board of Troy Industrial Development Authority We have audited the financial statements of Troy Industrial Development Authority (the "Authority") for the year ended December 31, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated January 9, 2024. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Matters FT Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Agency are described in Note A to the financial D statements. As described in Note A to the financial statements, the Agency adopted the following Governmental Accounting Standards Board (GASB) statements in 2023:   RA GASB Statement No. 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements (GASB 94): The Standard was adopted on a retrospective basis as of the beginning of the earliest period presented. The adoption did not result in any reclassifications or restatements of changes in net position or net position. GASB Statement No. 96 – Subscription-Based Information Technology Arrangements (SBITA) (GASB 96): The Standard was adopted on a retrospective basis as of the beginning of the earliest period presented. The adoption did not result in any reclassifications or restatements of changes in net position or net position.  Portions of GASB No. 99 – Omnibus 2022 (GASB 99) – The requirements of the standard that were effective upon issuance and the requirements that were effective for all fiscal years beginning after June 15, 2022 were adopted in the current year. These portions of the standards were adopted on a retrospective basis as of the beginning of the earliest period presented. The adoption did not result in any reclassifications or restatements of changes in net position or net position. We noted no transactions entered into by the Authority during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. 1 Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the Authority’s financial statements was management’s estimate of the market value of land held for development or resale.  Management’s estimate of land held for development or resale is based on an appraisal prepared by a third-party appraiser. We evaluated the key factors and assumptions used to develop the accounting estimate in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. FT Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no such misstatements. D Disagreements with Management RA For the purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated DATE. Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the Authority’s financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Authority's 2 auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters Management has omitted the management’s discussion and analysis information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. We were engaged to report on the Schedule of Supplemental Information-Straight Leases which accompanies the financial statements but is not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared FT and reconciled the supplementary information to the underlying accounting records and other records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Agency’s annual report that is defined by Section 2800 of the New York State Public Authorities Law, Annual Reports by Authorities. Our responsibility under professional standards is to consider whether a material inconsistency D exists between the annual report and the audited financial statements that includes our report thereon. The annual report has not been subjected to the auditing procedures applied to the audit of the basic financial statements, and accordingly, we do not express an opinion or RA provide any assurance on it. Restriction on Use This information is intended solely for the information and use of the Board of Directors and management of the Authority and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, 3