Local development authorities : further strengthening of controls would improve transparency and accountability

Special Examination Report No. 12-09

December 2013

Georgia Department of Audits and Accounts
Performance Audit Division
Greg S. Griffin, State Auditor Leslie McGuire, Director

Why we did this review
This review of Georgia's local development authorities was conducted at the request of the House Appropriations Committee. The Committee requested an "overarching" review of local development authorities. As a result, we reviewed 1) how many development authorities exist in each Georgia county and municipality, 2) if DCA ensures that all development authorities comply with registration and reporting requirements, 3) if development authority board members receive required training, and 4) if there are adequate financial controls to ensure the appropriate expenditure of state funds by development authorities. We limited our review to controls related to state law and state funds.
About Local Development
Authorities
Development authorities are separate entities created by local governments to promote the general economic welfare within their jurisdiction. Development authorities receive the majority of their operating revenue from local government grants or special local option sales tax revenue.
Georgia also sponsors several state grant programs to encourage economic development. Although they may support private projects, most grants are typically applied for and made to development authorities rather than to the private entities to avoid the state constitutional prohibition of gratuities.

Local Development Authorities
Further strengthening of controls would
improve transparency and accountability
What we found Local economic development authorities are an important component of the state's economic development efforts. In order to create or retain jobs, development authorities attempt to attract, retain and expand businesses within their jurisdictions by providing financial incentives to private entities. DCA provides state funds to local governments and/or development authorities who then provide the assistance to the private entities.
There are approximately 487 economic development authorities in the state. Currently, 192 of 682 Georgia counties and municipalities are members of multiple development authorities and five municipalities are members of more than one development authority. Of the 192 local governments with more than one development authority, 139 (72%) are a member of at least one single-jurisdiction and at least one multi-jurisdiction or "joint" authority.
One reason local governments participate in a joint development authority is to take advantage of job tax credit legislation. Counties and municipalities may be a member of more than one development authority for a variety of reasons such as the need for varying powers and board membership requirements due to each development authority's method of creation or different jurisdictional boundaries. A contributing cause for membership in multiple development authorities is that laws affecting the creation of development authorities have evolved over the past 60 years. Despite the large number of local development authorities, we did not find that this necessarily results in a duplication of effort.

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There are various state laws intended to ensure local development authorities are transparent and accountable. In addition, state grant program requirements are also designed to ensure the appropriate award and expenditure of state grant funds. Combined, these provide for a system of controls. There are a number of ways in which compliance with these controls could be strengthened to ensure greater accountability and transparency.
Recommendations for improvement include: 1. Better local development authority adherence to executive session requirements in Georgia's Open Meeting law.
2. Local development authorities should adopt ethics and conflict of interest bylaws and policies.
3. DCA should develop internal procedures to ensure that development authorities receiving state grant awards undergo annual financial audits that specifically include a review of these state grant funds.
4. DCA should require authorities to provide plans of corrective action regarding inadequate financial controls.
5. Development authorities should ensure that development authority board members receive the training required by state law.
6. DCA should consider requiring that authorities provide a current property appraisal validating the authority's purchase price is in line with the fair market value when state funds are used in the project.
DCA Response: DCA plays an important role as a partner with local development authorities in the vital task of creating jobs, new businesses and industries for our state. We of course share with DOAA the common goal of maintaining a high standard of transparency and accountability for public funds. At the same time we are committed to ensuring Georgia's development authorities have the ability to be as efficient and effective as possible whenever job creation opportunities arise in our state.

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Table of Contents

Purpose of the Special Examination

2

Background

2

Purpose of Development Authorities

2

History

3

Economic Development Activities

5

Activities and Financial Information

6

Governance and Oversight

8

Findings and Recommendations

10

While DCA and OneGeorgia's policies and procedures generally ensure that state

grant funds awarded to development authorities are appropriately awarded and

expended, further strengthening of controls could improve accountability and

transparency.

10

While development authorities generally complied with relevant state laws,

improvements are needed to maximize accountability and transparency.

14

DCA should develop procedures to ensure that registration and financial information

submitted by development authorities is accurate and complete.

18

Development authorities should ensure that development authority board members

receive the training required by state law.

21

Local governments are members of multiple development authorities for a variety of reasons; the multiple memberships do not necessarily cause a duplication of effort. 22

Appendix A: Objectives, Scope, and Methodology

25

Appendix B: Registered Local Development Authorities by County

28

Appendix C: Registered Local Development Authorities by City

35

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Purpose of the Special Examination
This review of Georgia's development authorities was conducted at the request of the House Appropriations Committee. The Committee requested an "overarching" review of local development authorities. Because the committee specifically requested a review of local development authorities we limited our review to economic/industrial development authorities (LDAs) and downtown development authorities (DDAs).1 In addition, we limited our review to controls related to state law and state funds. We did not review other types of local government authorities such as water/sewer, hospital, and airport authorities. Specifically, the review objectives were to determine:
1. If DCA and OneGeorgia Authority have adequate controls to ensure the appropriate award and expenditure of state economic development grant funds.
2. If development authorities have financial and management controls that provide transparency, avoid or mitigate conflicts of interests, and ensure the appropriate expenditure of public funds.
3. If DCA has appropriate procedures to ensure that registration and financial information submitted by development authorities is accurate and complete.
4. If the Georgia Department of Community Affairs (DCA) has appropriate procedures to ensure that all development authority board members receive the training required by state law.
5. The number of development authorities that exist and are active in each of Georgia's counties and municipalities and if there is any duplication of effort among these authorities.

This special examination generally covered activity related to the registration and financial reporting of development authorities to DCA and state economic development grants and loans awarded to these authorities from 2007 2012, with consideration of earlier or later periods when relevant. The audit team visited 11 development authorities located within six Georgia counties and reviewed 14 state economic development grant projects awarded to these authorities during fiscal years 2007-2012. A detailed description of the objectives, scope, and methodology used in this review is in Appendix A. A draft of the report was provided to DCA and to relevant development authorities for their review, and pertinent responses have been incorporated into the report.
Background

Purpose of Development Authorities
Development authorities are separate entities created by local governments to promote general economic welfare in their jurisdictions. Development authorities can be created to serve a single jurisdiction or may be established to provide services to multiple cities or counties (joint development authorities). The General Assembly has authorized two types of development authorities local economic development

1 Throughout the report we will collectively refer to these two types of authorities as development authorities or LDAs.

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authorities (LDAs) and downtown development authorities (DDAs), which we will refer to collectively as development authorities or LDAs for purposes of this report. The purpose of LDAs is to develop trade, commerce, industry, and employment opportunities. The purpose of DDAs is similar to that of LDAs but is more narrowly focused on the "revitalization and redevelopment of the central business districts of the municipal corporations of this state."

In order to create or retain jobs, development authorities attempt to attract, retain and expand businesses within their jurisdictions by providing financial incentives to private entities. These authorities can buy, sell or lease property and can also provide tax exempt financing. Property owned or controlled by such authorities is generally exempt from property taxes with this benefit being passed through to assisted businesses. Development authorities are typically authorized to issue revenue bonds that do not constitute an indebtedness of the state. This allows authorities to issue bonds that do not count toward their local government's debt limitation.
History

State Law
As shown in Exhibit 1, Georgia law affecting development authorities has evolved over the past 60 years. These changes include the creation of general enabling legislation for development authorities and passing laws related to tax credits for certain economic development projects. State law requires that development authorities annually register with and report financial information to the Georgia Department of Community Affairs (DCA). DCA also manages several economic development grant and loan programs, including those funded by the OneGeorgia Authority, that are awarded to development authorities.

Exhibit 1 Timeline of State Law Affecting Local Development Authorities From 1950's to current

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Creation of Development Authorities Changes in state law have impacted the method by which development authorities have been created. Development authorities have been established through the following mechanisms:
1. Local resolution citing a state statute: Two statutes2 have been enacted by the General Assembly which allow for the creation of development authorities in each city and county in the state. Local governments can create these authorities by passing a local resolution to that effect.
2. Local law: Local governments may create authorities through a local law subsequently approved by a resolution of the General Assembly.
3. Local amendment to the State Constitution: Prior to 1987, development authorities could be created through a local amendment to the State Constitution. Such amendments required approval from the city or county's electorate in a referendum.
As shown in Exhibit 2, most development authorities registered with DCA were created using the Development Authorities and the Downtown Development Authorities Laws.
Exhibit 2 Number of Local Development Authorities by Method of Creation Authorities Registered with DCA as of June 2013

Method of Creation
Local Resolution Citing General Statute
Local Law Local Amendment to State Constitution
Total
Source: DCA Records

LDAs
208 20 81 309

DDAs
141 25 12 178

As shown in Exhibit 3, prior to the passage of Georgia's Development Authorities Law in 1969 and the Downtown Development Authorities Law in 1981, many local governments had already created economic development authorities through a local amendment to the state Constitution or a local law passed by the General Assembly. The number of LDAs and DDAs created through these laws peaked immediately after their passage (in the 1970s and 1980s). In addition, the trend data in Exhibit 3 shows a dramatic decline in the number of LDAs and DDAs created by constitutional amendments after passage of the development authority laws. In 1981 the Development Authorities Law was amended to authorize the creation of joint development authorities, which are authorities with jurisdictions covering the
2 O.C.G.A 36-62-1 "The Development Authorities Law" and O.C.G.A 36-42-1-"The Downtown Development Authorities Law"

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territories of more than one local government. The slight increase in the number of LDAs created during the 1990's is mostly caused by the creation of joint development authorities in response to passing the Business Expansion Support Act of 1994 and amendments to the act in 1995. This Act encouraged local governments to create and participate in joint economic development authorities by increasing job tax credits by $500 per employee for economic development projects located within the jurisdiction of a qualified joint county development authority.

Exhibit 3 Number of LDAs and DDAs Created by Method and Decade (1950-current)

Local Economic Development Authorities

80

70

60

50

40

30

20

10

0 1950s

1960s

1970s

1980s

1990s 2000-current

Local Constitutional Amendment

General Statute

Local Law

Downtown Development Authorities

90 80 70 60 50 40 30 20 10
0 1950s

1960s

1970s

1980s

1990s 2000-current

Local Constitutional Amendment

General Statute

Local Law

Source: DCA Registration Database

Economic Development Activities
State and local governments administer economic development programs to create new jobs and retain existing jobs by attracting new businesses and encouraging the expansion of existing businesses. These programs provide financial assistance to private business in the form of (1) grants or loans to offset the cost of acquiring necessary land, buildings, or equipment, (2) state tax credits for jobs created, (3) local property tax abatements, (4) and issuing either tax-exempt or taxable industrial development bonds to be repaid by the private business. While state agencies including the Georgia Department of Economic Development (GDEcD) and

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The General Assembly shall not have the power to grant any donation or gratuity or to forgive any debt or obligation owing to the public...
Georgia Constitution Article III, Section VI

DCA provide state funds to assist specific businesses in their relocation to or expansion in Georgia, these funds are actually provided to local governments and/or development authorities which then provide the assistance to the private entities.
Although they support private entities, state economic development grants are typically made to development authorities rather than directly to the private entities to avoid the State Constitutional prohibition of gratuities. The Attorney General has opined (1995, 95-25 and 1993, 93-14) there is no "gratuity" if a public grantor accepts in-kind consideration of equivalent value in lieu of money. The in-kind consideration may take the form of a promise by the grantee (the private company) to assist the grantor (the development authority) in performing its governmental mission. Since the common mission of development authorities is to promote trade, commerce, industry, and employment opportunities, the provision of state grant funds through the development authority to the private entity assists the authority in performing its governmental mission. Prior to granting public funds to a private entity, the authority must adopt an "inducement" resolution which states that the authority's financing of the project will induce the company to locate or expand within the territorial area of the development authority. Until the public benefit has been attained, the asset or improvement funded by the state must be owned by the development authority and leased to the private entity.

Activity and Financial Information
Development authorities receive the majority of their operating revenue from local governments through local government grants or special local option sales tax revenue. The primary activity of development authorities is issuing revenue bonds for private entities. Besides issuing bonds, development authorities apply for state grants and loans. These activities are discussed below.

A bond is an obligation to repay borrowed money.

Private Activity Revenue Bonds Issued by Local Development Authorities
Development authorities issue industrial development revenue bonds to promote economic development by financing the acquisition, construction, renovation, expansion, improvement or modification of plants, factories, mills, machinery, equipment or any other property which an industrial concern might desire to acquire or lease in connection with the operation of such a facility within its jurisdiction. The development authority that issues a private activity bond is not liable for the repayment of that bond. The authority only acts as a conduit for the company's financing.
The primary benefit of revenue bonds issued by development authorities is the abatement of local ad valorem taxes for real and personal property operated by participating companies in an authority's jurisdiction. In Georgia, property owned by public entities such as development authorities are exempt from taxation. To transfer ownership of a private facility, such as a manufacturing plant, to a development authority, the authority issues private activity bonds for the company's facility. The authority then leases the facility to the company. The lease payments are used to pay back the bond, with the entity purchasing the facility at the end of the lease. During the period of the lease, a portion or all of the property's value is exempt from ad valorem taxation.

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As shown in Exhibit 4, over the past ten years, local development authorities issued over $34.2 billion in revenue bonds with approximately $2.2 billion issued during the most recent year (2012).

Exhibit 4 Revenue Bonds Issued by Development Authorities 2003-2012

Calendar Year
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Total
Source: DCA Records

Dollar amount of Bonds Issued
$3,026,850,229 1,891,956,087 2,497,315,291 3,185,607,450 5,127,733,591 5,264,295,859 4,417,023,823 4,569,502,785 2,117,662,252 2,168,358,872
$34,266,305,239

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State Grant and Loan Awards
Georgia sponsors several grant programs to encourage economic development. Exhibit 5 shows over the past 10 years DCA has awarded 504 grants and loans totaling $323,422,987 for economic development and downtown development projects.

Exhibit 5 State Economic Development Grant and Loan Awards to Development Authorities (2003-2012)

State Award Program
Downtown Development RLF1 Georgia Cities Foundation RLF Appalachian Regional Commission RLF Life Sciences Facilities Fund OneGA-AirGeorgia OneGA-Bridge OneGA-E-9-1-1 Fund OneGA-Edge Fund OneGA-Equity Fund OneGA-Strategic Industry Loan Fund Regional Economic Business Assistance Total
1 RLF is an acronym for Revolving Loan Fund Source: DCA Records

No. of Projects
50 74 11
6 5 10 3 151 128 3 63 504

Total Award Amount
$8,284,025 13,449,063
1,833,950 6,369,645 5,696,697 6,589,392 1,600,000 142,686,487 51,409,175 3,758,300 81,746,254 $323,422,987

Governance and Oversight

Each LDA or DDA has a board of directors, whose role is to set policy and to oversee and monitor the operations of the development authority. Both the Development Authorities Law and the Downtown Development Authorities Law include requirements related to board composition, appointments, and term lengths for authorities created through these statutes. Development authorities established by constitutional amendment or by local law also have boards of directors; however, the specific amendment or law creating each of these authorities defines the membership requirements of each board.

A fiduciary duty is an obligation to act in the best interest of another party.

Development authorities are local governmental entities independent of the State, and their governing boards have a fiduciary duty to ensure they make decisions and act in a manner that safeguards public assets and contributes to the efficiency and effectiveness of the authorities' operations. In performing this duty, the primary responsibility of the board of directors is overseeing the authority's chief executive in the effective and ethical management of the authority. In addition, the board establishes and adopts the policies which guide authority activities. In performing these activities, boards of directors convene in public meetings to discuss and vote on authority business such as the adoption of budgets, formation of operational

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policies and procedures, and reviewing financial reports and audits. The boards of directors also discuss and vote on activities associated with specific economic development projects such as the acquisition, sale, or lease of property, issuing revenue bonds, and the acceptance of state grant and loan funds.
State law requires all local development authorities to report certain information to the Department of Community Affairs (DCA). The General Assembly passed the Local Government Authorities Registration Act (O.G.G.A. 36-80-16) during the 1995 legislative session. This act requires local government authorities to register annually with the DCA beginning January 1, 1996. The act also specifies that local government authorities may incur no debt or credit obligations after January 1, 1996, unless they are registered. Prior to this legislation, there was no official record of how many authorities were operating within the state. In addition, state law (O.C.G.A. 36-81-8) requires development authorities to annually submit a financial report to DCA that includes the total number and value of outstanding revenue bonds. Authorities are prohibited from receiving state grants and loans and from issuing new debt until these reports are submitted. Bond attorneys review DCA reporting records during the bond issuance process and include an attestation in the bond package that the authorities are compliant with these reporting requirements. Development authorities are also required to submit information detailing bond issuances exceeding $1 million within six months of the issuance date.

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Findings and Recommendations
While DCA and OneGeorgia's policies and procedures generally ensure that state grant funds awarded to development authorities are appropriately awarded and expended, further strengthening of controls could improve accountability and transparency.
The REBA, EDGE and Equity programs have adequate controls to ensure the appropriate award and expenditure of state grant funds. These grant programs provide development authorities funds for economic development. Each program has criteria for applications and award decisions (see page 13 for specifics). Development authorities must meet these specific criteria to be eligible to receive grant funds. We found that both DCA and OneGeorgia generally adhere to their policies and procedures, but in limited instances improvements could be made.
Criteria for Applications and Award Decisions In order to determine if DCA's and OneGeorgia's award selection criteria were applied, we reviewed project award databases, DCA's local authority registration database, and project files for a sample of awards. The results of this review related to award decisions is discussed below.
Applicant Eligibility: All development authorities that are party to an application must be currently registered with DCA and must be current in their report of local government finances. Both DCA and OneGeorgia typically ensure that all development authorities applying for program funds meet these eligibility requirements. However, we identified several in which an authority received an award but did not register with DCA the year in which the loan or grant was awarded. Thirteen of 267 development authorities awarded state funds between 2007 and 2012 lacked a current registration.
Location Eligibility: Only counties that meet population, poverty and geographic location criteria are eligible for EDGE and Equity funds. OneGeorgia ensures that only those projects in eligible and conditionally eligible counties receive EDGE and Equity funds. In all 14 project files included in our review, the projects met location eligibility requirements.
Project Selection: Only projects designed to increase economic opportunities for the community are eligible for program funding. Application review and assessment procedures employed by both DCA and OneGeorgia ensure that only those project types which are eligible for EDGE, Equity, and REBA funding receive those awards. DCA and OneGeorgia application review procedures assess the relative merits of each project's economic development opportunities including but not limited to the following factors: o Numbers and types of jobs retained and/or created; o Total private capital investment; o Impact on the state, regional and community economy and tax base; o Degree of local commitment; consistency with local and regional
development goals and objectives; and, o Project readiness and feasibility.

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In all 14 project files included in our review, the projects met project selection requirements.
Fund Disbursement and Expenditure Controls We reviewed project documentation at DCA and at development authorities for a sample of 14 awards to determine if DCA's procedures related to the disbursement and oversight of grant funds were applied.

Cost Documentation: DCA requires development authorities to submit "draw requests" with third-party cost documentation supporting fund disbursement requests. Our review of project files confirmed that DCA ensures that development authorities submit adequate cost documentation prior to disbursing grant funds. In all 14 project files included in our review, we found that DCA staff received and reviewed cost documentation prior to disbursing grant funds.

Submission of Financial Audits: Our review found that DCA does not ensure development authorities submit the required financial audits or the financial audits that are submitted include the necessary information. At the time of our review, annual financial reports with grant revenue and expenditure information should have been submitted to DCA for 13 of the 14 projects reviewed. Funds for the remaining project had not yet been disbursed as of the last audit reporting period. However, documentation of DCA's receipt and review of development authorities financial audit reports was evident in only four of the 13 project files. Because DCA's files did not include the required annual financial audit for nine of the projects included in our sample, we obtained these financial audits directly from the development authorities awarded the grants. Our review of the financial audits found that audits associated with four of the 13 projects lacked the information that accounts for the receipt and expenditure of grant funds (i.e., a Project Cost Schedule and a Source and Application of Funds Schedule.)

DCA staff stated they will not formally close a project until they have received the required annual financial audit that documents the appropriate expenditure of state grant funds. However, we found that the receipt and review of such audits by DCA staff is not included in the standard form completed by DCA staff during the grant closeout process. Files for three of the four projects in our sample formally closed by DCA included documentation that DCA staff received and reviewed financial audit reports.
Performance Controls We reviewed project documentation at DCA and at development authorities for a sample of 14 awards to determine if the required performance "clawback" agreements were executed and enforced. The purpose of these agreements is to ensure that the agreed upon public benefit, such as job creation, is obtained for the provision of state grant funds.
We found evidence in files for all 14 of the projects reviewed that DCA ensures these agreements are executed and follows up with the development authority throughout the award process to document the status of these goals. DCA accepts an attestation from the development authority that the public benefit goals have been met.

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Usually, the development authority will obtain and forward to DCA a letter from the business stating the number of jobs created and the private investment made. DCA's project closeout procedures do not include an independent verification of this information.

RECOMMENDATIONS While DCA and OneGeorgia's policies and procedures generally ensure that state grant funds are appropriately awarded and expended, further strengthening of controls could improve transparency and accountability.
1. DCA should ensure all development authorities are properly registered prior to being awarded a grant.
2. DCA should develop internal procedures to ensure that development authorities receiving state grant awards undergo required annual financial audits that specifically include a review of these state grant funds. In addition, DCA's project closeout form should include a section which indicates whether the necessary financial audits have been reviewed and that the audits account for the appropriate expenditure of the grant funds.
3. DCA should consider implementing procedures to independently verify that job creation and private investment goals have been attained.
DCA Response: The DOAA report notes that 13 authorities were found that received an award of state funds in a year for which they were not registered, but the critical distinction for the purposes of complying with O.C.G.A. 36-80-16(c)is not whether DCA conferred an award but rather the disbursement of funds from an award to a local authority. DCA withholds grant award funds to local authorities if they have not complied with the registration requirement of state law.

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State Economic Development Grant and Loan Programs: REBA, EDGE, and Equity
REBA (Regional Economic Business Assistance) Program: A state grant program administered by DCA that is used to help "close the deal" when companies are considering Georgia and another state or country for their location or expansion. REBA funds may be used to finance various fixed-asset needs of a company including infrastructure, real estate acquisition, construction, or machinery and equipment. A local development authority must be the applicant for a REBA application and the application must be supported by a recommendation letter from a state agency, typically the Georgia Department of Economic Development.
EDGE (Economic Development, Growth and Expansion) Fund: A OneGeorgia Authority program that is utilized when one rural Georgia community competes for business location and/or expansion with another community from outside the state.
The Equity Fund: A OneGeorgia Authority program that provides financial assistance to rural communities to help build the necessary infrastructure for economic development. Equity funds are also available as loans for several different types of projects, such as constructing speculative buildings in order to attract additional industries to these regions.
Criteria for Applications and Award Decisions:
Applicant Eligiblity: All development authorities that are party to an application must be currently registered with DCA (O.C.G.A 36-80-16) and must be current in their report of local government finances (O.C.G.A 36-81-8(b)).
Location: The OneGeorgia Authority recognizes counties as directly eligible for EDGE and Equity Funds if they have a population of 50,000 or less, a poverty rate of 10% or greater, and are located outside the boundaries of a metropolitan area. OneGeorgia recognizes additional counties as being conditionally eligible if they have a population of less than 500,000 and share a border with a directly eligible rural county. For the purposes of awarding REBA funds, DCA does not have location restrictions.
Project Selection: Only projects which are designed to increase economic opportunities for the community are eligible for program funding. Program funds may be used to finance various fixed-asset needs of a private business including infrastructure, real estate acquisition, construction, or machinery and equipment.
Fund Disbursement and Expenditure Policies and Procedures:
Cost Documentation: DCA requires development authorities to submit "draw requests" with third-party cost documentation supporting fund disbursement requests. Examples of cost documentation include closing statements for real estate transactions, purchase orders, contracts, receipts, or invoices.
Evidence that Program Funds Were Appropriately Used: DCA requires development authorities receiving program funds to provide a copy of the annual financial audit that reports the receipt and expenditure of state grant funds.
Performance "Clawback" Agreements:
Beginning in 2006 DCA and OneGeorgia implemented the Accountability Policy which requires each business assisted with state economic development grant to be accountable for the delivery of public benefits that were specified in the grant applications. These benefits include the proposed number of jobs created or retained and the proposed amount of private capital investment. To accomplish this, DCA and OneGeorgia require local development authorities applying for grant funds to execute a standard "clawback" agreement with the business. This agreement specifies that the assisted business deliver at least 70% of the committed benefits within an established performance period which is generally defined as 24 months after completion of the funded activity. Businesses that deliver less than 70% of the committed public benefits are subject to a prorated repayment requirement.

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While development authorities generally complied with relevant state laws, improvements are needed to maximize accountability and transparency.
Although LDA's are subject to local governance and oversight, these authorities must also comply with various state laws intended to promote accountability and transparency in government. These include Georgia's Open Meetings Law, Georgia's Code of Ethics, and requirements for an annual financial audit. In addition, there are best practices intended to promote accountability and transparency that development authorities could adopt, such as requiring board members to complete annual financial disclosure statements and requiring property appraisals before acquiring real property. In addition to promoting accountability and transparency, these laws and best practices assist development authority board members in performing their fiduciary duty. In general, the development authorities we reviewed complied with state law, but we noted potential improvements.
Open Meetings With the exception of complying with the executive session requirements, the development authorities we reviewed generally adhere to Georgia's Open Meetings Law (O.C.G.A. 50-14-1). We found of the eight authorities reviewed that entered into executive session that five failed to properly record board discussions and decisions made during "executive sessions" (the portions of board meetings that were closed to the public.) Examples of non-compliance are discussed further below.

Georgia's Open Meetings Law
Georgia's Open Meetings Law (O.C.G.A 50-14-1) requires that all meetings of local development authority board members satisfy the following requirements:
All board meetings must be open to the general public. All meetings must have pre-posted agendas. Minutes of meetings must be maintained. All votes at any meeting must be taken in public and minutes must record the names of persons voting
against a proposal or abstaining when a vote is taken by roll call and not unanimous.
State law identifies specific circumstances under which certain board discussions, called "executive sessions", can be closed to the public. State law defines the subject matter that may be discussed in executive session:
Matters encompassed by the attorney-client privilege. Matters involving real estate. Deliberations regarding employees, agents, or members. Incidental conversation unrelated to the business of the agency.
When an authority board enters into executive session, state law requires that meeting minutes of the closed session be taken. In addition, state law requires the board to execute an affidavit documenting the reasons for the executive session and certifying that only those matters within the stated exception were discussed.

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Minutes of Board Meetings While 10 of 11 development authorities reviewed maintain adequate minutes of the portion of board meetings open to the public, the remaining board's minutes do not contain adequate information. Regular public meetings of this authority (Authority A) are held in tandem with the jurisdiction's other economic development authority (Authority B). Authority A's minutes only show that members of Authority A were present and participated in a "joint meeting" with Authority B but do not detail what was discussed or how board members voted. Therefore, the actions or votes of the board for Authority A are not maintained in any minutes.
Executive Sessions Five of eight development authorities that reported having entered into executive sessions during the period of our review (calendar year 2010 to 2012) did not record the specific reasons for those sessions, nor did they execute an affidavit for the sessions. State law requires that if board members adjourn to a private meeting, the specific reasons for such meeting shall be entered into the official minutes. In addition, state law requires the board to execute an affidavit documenting the reasons for the private meeting and certifying that only those matters were discussed. The remaining three authorities in our review noted the specific reasons for these sessions and executed the required affidavit.
Code of Ethics State law (O.G.G.A. 45-10-3) establishes a code of ethics for members of boards, commissions, and authorities created by state statute, and O.C.G.A. 36-62A-1 requires development authorities created under local constitutional amendments and by state statute to comply with the code of ethics. Among other items, this law prohibits board members from taking any official action regarding any matter in which they know or should know they have a direct or indirect monetary interest in the outcome of the official action. Only two of the 11 authorities reviewed include a formal conflict of interest policy in their bylaws or policies and procedures. Both of these development authorities model their policies after, or refer to, Georgia's Code of Ethics law. Only one of these development authorities requires board members to formally acknowledge and agree to the ethics policy. This is accomplished by requiring each board member to sign a Compliance and Conflict of Interest Statement. Although the other development authorities reported they do not have a specific ethics policy in their bylaws or rules and regulations, they all noted they knew of and followed the state law regarding conflicts of interest.
O.C.G.A 36-62A-1 provides a "safe harbor" for development authority board members by allowing transactions that may present a conflict of interest with a current board member if (1) these transactions are disclosed in advance to the other board members of the authority and the disclosure is recorded in the official meeting minutes of the authority and (2) such transactions with a value over $200 per calendar quarter are published by the authority in the county's legal organ (newspaper) at least 30 days prior to the transaction. The "safe harbor" law also prohibits board members having a substantial personal interest in any authority transaction from

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Segregation of Duties"Those that keep the books shouldn't keep the money and vice versa."

being present at the portion of the authority meeting during which discussion of the matter is conducted and from voting on the matter.
While all authorities stated they know of and follow Georgia's "Code of Ethics" Law and the related "safe harbor" provisions, we found that one authority did not ensure these standards were met. An authority failed to maintain sufficient records of its open board meetings identifying issues discussed and how individual board members voted on each issue. We determined that Authority A used local funds to acquire land from a charitable foundation whose president was also a board member of Authority A. However, as previously discussed, Authority A did not record how individual board members voted on this issue, or even that they voted on the issue at all. As a result, there is no record that this board member followed the state's "safe harbor" provisions by acknowledging publicly his potential conflict of interest, not participating in the portion of the meeting during which the matter was discussed, and not voting on the matter.
Conflicts of Interest While board members of local development authorities are not required to complete and file Personal Financial Disclosure Statements with the Georgia Government Transparency and Campaign Finance Commission, state law (O.C.G.A. 21-5-3) requires all board members and executive directors of state boards, commissions, and authorities to complete the statement. The statement discloses personal financial interests for the preceding calendar year including information such as all fiduciary positions, direct ownership interests in any business entity, direct ownership interests in real property, spouse's direct ownership interest in real property, the filer's employment and family members information, filer's investment interests and known business or investment interests of spouse and dependent children. These statements make it easier to identify possible conflicts of interest before a potential issue could develop.
Financial Audit Georgia's Development Authorities Law (O.C.G.A. 36-62-5(f)) requires development authorities to undergo an annual financial audit and to submit a copy to the local governing body. Annual financial audits are conducted for 10 of the 11 development authorities included in our review. While the remaining development authority does not undergo an annual financial audit as required, its accountant prepares monthly financial statements which are regularly presented at public board meetings.
The financial audits for eight of the development authorities reviewed did not include significant findings regarding financial controls. Annual financial audits for two of the 10 development authorities reviewed that undergo such audits included findings related to inadequate financial controls. One of these authorities was cited for inadequate segregation of duties for five consecutive years. During the last audited period, an employee from this authority was found to have potentially misused agency funds. The 2011 financial audit for the other authority cited for inadequate financial controls included the finding that "due to the small size of the Authority's staff, controls are not practical to provide adequate segregation of duties in cash receipts

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and disbursements functions." According to Institute of Internal Auditors, "One
internal control above all others can make fraud more difficult to commit: segregation of
duties. Those that keep the money shouldn't keep the books and vice versa." In performing their fiduciary responsibilities, board members should act upon such findings in financial audits to ensure they are resolved in a timely manner.

Appraisal ReportA written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of the defined value of the property.

Property Appraisals None of the 11 authorities in our review have formal policies or procedures that require appraisals of the value of real property prior to acquiring such property. In addition, regulations for each of the state grant and loan programs included in our review do not require property appraisals for locally funded land acquisitions associated with state funded projects. Property appraisals are a component of the real estate acquisition process because they document the fair market value (FMV) of the property and serve as the basis for the initial offer to property owners. State agencies, such as the Georgia Department of Transportation (GDOT), require property appraisals prior to purchasing real estate. We reviewed four projects that used local funds and two projects that used state funds to finance at least a portion of the real estate acquisition costs. We found that authorities did not obtain current appraisals for all four of the projects using local funds to purchase property. In addition, we found that while authorities did obtain and submit to DCA appraisals for the two projects using state funds, the purchase price for the property associated with one of the projects exceeded the appraised value.

RECOMMENDATIONS Prior to awarding state grant and loan funds to development authorities, DCA should require these authorities to provide evidence that basic internal controls are in place that safeguard state and local investments in economic development.

1. All authorities should provide evidence they meet Georgia's Open Meetings law by properly recording board discussions and decisions made during "executive sessions" (the portions of board meetings closed to the public).

2. All authorities should be required to include a formal conflict of interest policy in their bylaws or policies and procedures. In addition, during the award application process board members of development authorities should be required to complete and submit to DCA Personal Financial Disclosure Statements similar to those required of members of State boards and authorities (O.C.G.A. 21-5-3).

3. Prior to awarding state grant and loan funds to development authorities whose last financial audit includes findings regarding inadequate financial controls, DCA should require those authorities to provide plans of corrective action.

4. Prior to providing state funds for projects involving property acquisition, DCA should require the authorities to provide a current property appraisal validating the authority's purchase price is in line with the fair market value of the land.

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DCA Response: DCA agrees with the recommendation of the DOAA report that governance and oversight of development authorities are largely the responsibility of local authorities themselves, and their compliance with various state laws intended to promote transparency and accountability are in the best interests of the state. While the potential for improvements in the transparency and accountability of local development authorities exists, as noted in the DOAA report, state law does not authorize a regulatory role for DCA with regard to these public entities and therefore can only be a partner with them and other relevant state agencies in any improvement process. An example of how DCA could assist in an effort to maximize accountability of local development authorities is enhanced public reporting of the results of local development authority projects funded with state grants or loans on an annual basis.

DCA should develop procedures to ensure that registration and financial information submitted by development authorities is accurate and complete.
While state law3 requires development authorities to submit operational and financial information to DCA, it (DCA) lacks procedures to ensure the accuracy and completeness of this information. To collect and report the information, DCA has developed the necessary forms and online reporting tools as well as maintains multiple databases. We reviewed these databases and found examples of inaccurate, inconsistent, and incomplete information. The three databases we reviewed are discussed below.
Annual Authority Registration Database State law4 requires development authorities to provide DCA with basic information such as the authority's legal name, members, function, date and means of creation, address, and telephone number. Authorities provide and annually update this information on DCA's online Annual Authority Registration database. The information in this database is available to the public via DCA's website. While the registration database meets all statutory requirements, we found inaccurate and incomplete information within the registration database.
DCA has no procedures to ensure that all authorities register and maintain a current registration. As of the 2012 registration period, DCA's database contains records for 1,241 local authorities. None of these authorities have been reported as dissolved. By the end of the 2012 registration period, approximately 20% (241) of these authorities had failed to submit a current registration. In fact, 41 of these authorities have submitted registration information only once since 2001.
To enforce the registration requirements, development authorities not registered are prohibited from issuing debt and from receiving state appropriated funds. Most development authorities awarded state funds and reporting debt on the Debt Issuance Reports had a current registration in the year of the award and debt issuance. However, as
3 O.C.G.A. 36-80-16, 36-81-8, and 36-82-10 4 The "Local Government Authorities Registration Act" (O.C.G.A. 36-80-16) enacted in 1995 requires all Georgia local government authorities to register annually with DCA.

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discussed in the finding on page 9, we found 13 instances of authorities receiving awards in 2007-2012 that did not register in the year in which they received the award.
DCA does not have adequate validation processes to ensure the database's accuracy. The information recorded in the registration database is self-reported by each authority with no additional verification by DCA staff. Also, the system lacks any automatic edit checks to limit the type of information entered in a field.
For example, DCA's online registration form allows the registrant to choose from among a list of three choices for the authority's method of creation but requires a text entry for the official citation/legislation that created the authority. Our review of DCA's Local Government Authorities Directory revealed numerous inconsistencies between the method of creation and official citation listed for the authority. The method of creation and the applicable code section is important in determining development authority organization such as required board size. We reviewed the registration information for a sample of eight DDAs that reported to DCA they were created via local law. However, in their annual registration information, they cited the general enabling statute for downtown development authorities (36-42-1) as their official citation for establishment. Upon further review, auditors determined those authorities that cited the general enabling legislation were established through the general enabling legislation for downtown development authorities and had incorrectly reported to DCA the method in which their authority was established.
Local Authorities' Financial Information O.C.G.A. 36-81-8 requires all development authorities to submit to DCA an annual report of revenues, expenditures, assets and debts, including individual bond issues exceeding $1 million. This information is reported by development authorities through DCA's online reporting mechanism the Report of Registered Authority Finances (RAF). Another state law5 requires development authorities to report individual debt issuances exceeding $1 million to DCA within 60 days of the issuance. This information is in DCA's Debt Issuance Report (DIR) database.
Since both databases include information related to debt issuances exceeding $1 million, we compared the two databases to identify discrepancies between the two databases. As detailed below, we found examples of debt issuances reported in one database not reported in the other.
We identified a sample of 100 bond issuances reported in the DIR as having been issued during 2008 through 2010 and found that only 31 (31%) of these bond issuances were also reported in the RAF. In addition, 51% of the authorities that reported issuing bonds in the DIR reported no debt in their annual RAF for that time period.

5 O.C.G.A 36-82-10

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Likewise, we identified a sample of 65 bond issuances exceeding $1 million reported in the RAF and found that only 38 (58%) of the bond issuances reported in the RAF were also reported in the DIR.
Based on the examples above, there does not appear to be an accurate and complete listing of bonds issued by development authorities operating in Georgia.
RECOMMENDATION DCA should develop procedures to verify the accuracy of information submitted by development authorities. These procedures could include an annual comparison of the two financial databases to identify inconsistencies and a periodic review of data entered into the registration database to identify errors or omissions.

DCA Response: While the current DCA system and process satisfies the need for local authority registration expressed by the General Assembly in O.C.G.A. 36-80-16 (b), DCA agrees with the DOAA report regarding the benefit to the state for more accurate, complete and timely reporting of authority operational and financial information through the registration process. The question remains of how the Department would accomplish this. O.C.G.A. 36-80-16 (h) expressly prohibits DCA from charging a fee for the annual local authority registration, although it does authorize "reasonable fees for the work related to administration and enforcement of this Code section." To achieve the DOAA recommendation in this report of ensuring, through a validation process or other means, the accuracy of all the registration information reported to the Department by local authorities, DCA would need a substantial investment in both technology and staff.
DCA agrees with the recommendation in the DOAA report regarding the potential for improvement to the correlation between the Report of Registered Authority Finances and the Debt Issuance Report. DCA can build the capacity to perform an annual comparison of the data in the two separate databases, checked against audit information when available, to identify inconsistencies, errors or omissions. Generating such a comparison on an annual basis would raise the question of how DCA, with existing staff capacity and technology, would then follow up on the information discoveries by the reconciliation report.

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Development authorities should ensure that development authority board members receive the training required by state law.
State law6 requires each member of a governing board or body of a development authority to attend and complete at least eight hours of training on development and redevelopment programs within the first 12 months of his/her appointment. One of the six development authorities we visited was able to produce documentation that all of its current board members completed the required training. In addition, DCA's procedures do not provide assurances that all development authority board members receive required training.
As part of DCA's development authority registration process, DCA requests the authority's representative completing the registration to attest that board members have received the training required by state law. However, as state law does not require DCA to collect this information, DCA accepts authority registrations with or without the submission of information related to board member training. Also, when authorities provide the training status for their board members, DCA does not take steps to verify the accuracy of the information submitted. According to DCA staff, DCA lacks the time and staff necessary to verify the training status of board members for all of the authorities operating within the state. The law which requires board member training does not specify a consequence if these requirements are not met. As a result, DCA has no ability to enforce these provisions. Only one of the six development authorities we visited during the audit was able to produce documentation that all of its current board members successfully completed the required training. Staff members of the development authorities in the remaining five jurisdictions stated they did not maintain documentation of training on all members and could not recollect the exact time or training each member received.
RECOMMENDATION
The General Assembly should consider revising state law to require development authorities report the training status of their board members to DCA during the annual registration process. DCA should establish procedures that ensure this information is reported before accepting annual registrations from development authorities. Without these changes, there are no assurances that development authority board members are satisfying their statutory requirement to attend and complete at least 8 hours of training on development and redevelopment programs.
DCA Response: DCA agrees with the DOAA report regarding the benefit to the state of improved training of authority board members. Should legislation be enacted that strengthens authority board member training requirements and/or the verification of reported training status to the Department, DCA would modify existing procedures to ensure compliance.

6 O.C.G.A 36-62A-21 of the Development Authorities Law and O.C.G.A.36-42-7 of the Downtown Development Authorities Law

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Local governments are members of multiple development authorities for a variety of reasons; the multiple memberships do not necessarily cause a duplication of effort.
Currently, 192 out of 682 Georgia counties and municipalities are members of multiple development authorities and five municipalities are members of more than one DDA. Counties and municipalities may be a member of more than one development authority for a variety of reasons such as the need for varying powers and board membership requirements due to each development authority's method of creation or different jurisdictional boundaries. A contributing cause for membership in multiple development authorities is that Georgia law affecting the creation of development authorities has evolved over the past 60 years. Also, development authorities may become inactive over time, but continue to legally exist. These reasons are discussed below.
Membership in both single- and multi-jurisdiction development authorities Most local governments with more than one development authority have a combination of both single-jurisdiction and joint development authorities. A singlejurisdiction authority is defined as an authority whose jurisdiction only encompasses the territorial limits of the county or city in which it resides. A multi-jurisdiction authority, also called a joint development authority, is one with at least two participating local governments and a jurisdiction that includes the territorial limits of the participating governments. Of the 192 local governments with more than one development authority, 139 (72%) are a member of at least one single-jurisdiction and at least one multi-jurisdiction authority. Of these 139 local governments, 117 had created a single-jurisdiction authority prior to the creation of the multi-jurisdiction authority to which they belong. One reason local governments with an existing single-jurisdiction authority participate in a joint development authority is to take advantage of job tax credit legislation. In 1994, the Business Expansion Support Act was enacted which encouraged local governments to create and participate in joint economic development authorities by increasing job tax credits by $500 per employee for economic development projects located within the jurisdiction of a qualified joint county development authority.
The creation and activation of a new joint development authority or singlejurisdiction development authority within a local government has no inherent legal effect on the existence or powers of any existing development authority. This is because Georgia law contains no provision for the merger of existing development authorities, even if both development authorities are in the same county. The existing or "old" development authority will continue to exist.
Forty-eight local governments have two single-jurisdiction authorities typically with one created by constitutional amendment and the other by activating the state statute, called the Development Authorities Law. This law, passed in 1963, "creates" a development authority in each city and county in Georgia, although such a development authority cannot transact any business until it is "activated" by proper resolution of the governing body of the city or county. We found that 28 of the local governments had already established a development authority by constitutional amendment or local law prior to activating the statutory authority.

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Inactive authorities A potential reason for a local government's membership in multiple development authorities is a development authority may be legally active, but may be functionally/operationally inactive. Authorities must remain legally active until all bonds have been repaid. After debt has been repaid, state law provides for the dissolution of authorities except for DDAs.
State law requires all authorities to annually register with and submit a financial report to DCA. While failing to submit this information does not signify an authority is inactive, failure to provide these reports continually may indicate inactivity. We found that as of the end of the 2012 registration period, 241 authorities were not currently registered with DCA, with over 75% (186) having not filed an annual registration with DCA for two or more years. None of these authorities has been formally dissolved.
Differing missions and powers According to DCA and development authority officials, local governments may create or participate in more than one economic development authority because the local government is seeking to implement certain powers or to avoid certain requirements found in various methods of creation. Development authorities created through constitutional amendment or local law will have unique missions and/or powers that are identified in their specific amendment or local law. All statutory authorities have the same powers and mission defined in state law. According to legal counsel for several development authorities, most development authorities created through constitutional amendments and local laws have much the same governmental mission as statutory development authorities. However, some constitutional development authorities have more powers and/or a broader "governmental mission" than statutory development authorities.
For example, the Downtown LaGrange Development Authority was created via constitutional amendment in 1975 and consists of a fifteen member board, five of whom are appointed by the Mayor and Council (another five represent the owners of real property which may be taxed by the authority and the remaining five represent owners of business establishments located within the downtown district). The Downtown Development Authority of the City of LaGrange was subsequently created in 1981 through general statute and consists of a seven member board, all of whom are appointed by the Mayor and Council. In addition, the Downtown LaGrange Development Authority (the authority created in 1975 via constitutional amendment) possesses the power of eminent domain, which is not available to the Downtown Development Authority of the City of LaGrange.

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Example of a local government with multiple development authorities
City of LaGrange Currently the city has two single-jurisdiction LDAs and two DDAs registered with DCA. While these authorities have separate governing boards, they share the same staff resources.
Economic/Industrial Development Authorities 1. LaGrange Development Authority-established by a 1964 local amendment to the State
Constitution. 2. Development Authority of LaGrange-established by a 1972 resolution citing the Development
Authorities Law.
According to the executive director of both economic development authorities, the two authorities operate jointly. The governing boards for both authorities meet at the same time and often participate in the same projects. Additionally, the financial transactions for both authorities are combined into one financial statement and one year-end financial audit. According to the executive director, the first authority established by constitutional amendment in 1964, the LaGrange Development Authority, is typically used to issue revenue bonds to finance the acquisition and development of property. The second authority established by activating the general statute in 1972, the Development Authority of LaGrange, is typically used to develop, own, and lease property to private companies as a conduit for providing tax abatement incentives. The executive director could not identify the specific powers or limitations that require the authorities to perform these roles in either authority's enabling legislation. However, the executive director stated their bond counsel had suggested these roles for each of the authorities.
Downtown Development Authorities 1. Downtown LaGrange Development Authority-established by a 1975 local law passed by the
General Assembly. 2. Downtown Development Authority of the City of LaGrange-established by a 1981 resolution citing
the Downtown Development Authorities Law.
DCA's registration database shows these two authorities share the same executive director and the same 15 board members. However, according to the latest enabling legislation for the Downtown Development Authority of the City of LaGrange, it should have a board comprised of only seven members. Based on discussions with the authorities' executive director, the Downtown Development Authority of the City of LaGrange has been inactive for an unknown period of time and does not currently have a governing board. The executive director could not provide documentation that any formal procedures were followed to close or suspend the business of this authority.
SUMMARY While many counties and municipalities are members of more than one development authority, there is not a single reason for the multiple memberships. Counties and municipalities may be a member of more than one development authority for a variety of reasons such as the application of different jurisdictional boundaries or the the need for varying powers and varying board membership requirements provided by each authority's method of creation. These multiple memberships do not necessarily cause duplication or inefficiencies as many local governments with multiple authorities share the same staff resources among the authorities.
DCA Response: DCA agrees with this recommendation.

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Appendix A: Objectives, Scope, and Methodology
Objectives
This report assesses state-level controls over local economic development authorities (LDAs) operating throughout the state of Georgia, as well as state loan and grant program controls over awards to LDAs. Specifically, our audit set out to determine the following:
1. The number of LDAs that exist and are active in each of Georgia's counties and municipalities and if there is any duplication of effort among these authorities.
2. If DCA has appropriate procedures to ensure that all local development authority board members receive the training required by state law.
3. If DCA has appropriate procedures to ensure that registration and financial information LDAs are required to submit is accurate and complete.
4. If DCA and OneGeorgia Authority have adequate controls to ensure the appropriate award and expenditure of state economic development program funds.
5. If LDAs have financial and management controls that provide transparency, avoid or mitigate conflicts of interests, and ensure the appropriate expenditure of public funds.
Scope
This special examination generally covered activity related to the registration and financial reporting of LDAs to DCA and to state economic development grants and loans awarded to LDAs from 2007 2012, with consideration of earlier or later periods when relevant. Information used in this report was obtained by reviewing relevant laws, rules, and regulations; interviewing agency staff from DCA and a sample of LDAs, analyzing LDA registration and financial reporting databases maintained by DCA, analyzing DCA's state grant awards database, and reviewing DCA project files for a sample of state economic development grant awards to LDAs.
Due to the large number of jurisdictions/counties throughout the state and the complex nature of state funded projects, a small, non-statistically valid sample of state grant projects and LDAs was chosen for review. The sample included authorities operating in five counties which were chosen based on the following criteria: LDAs that received relatively large sums of state economic development awards; counties in urban areas as well as in rural areas; and, counties from different areas of the state (i.e., north, south, east, west, etc..) Using these criteria, the counties that were chosen to be in the sample included Troup, Chatham, Fayette, Bibb, and Hart. The sixth county, Ware County, was included in our sample due to the specific request of the House Appropriations Committee. Within these six counties, the 11 authorities included in this analysis were the local economic development authorities and downtown development authorities operating in those counties based on DCA's authority registration data. The audit team then identified 14 state economic development grant projects for review that were awarded to these authorities during the past five fiscal years (2007-2012). Grants awarded prior to this period were not included in our review because they would not be representative of current policies and procedures in place at DCA and OneGeorgia Authority.

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The data sets we used to inform multiple audit objectives are described below. We assessed the controls over data used for this examination and determined that the data used were sufficiently reliable for the purposes of our review.
Local Government Authorities Registration Database: The "Local Government Authorities Registration Act" O.C.G.A 36-80-16 enacted in 1995 requires all local government authorities authorized to operate in the State of Georgia to register annually with DCA. The law requires DCA to administer the registry and specifies that the registry include, at a minimum, "information on the authority's legal name, members, function, date and means of creation, contact person, address, and telephone number." DCA has implemented an online registration portal in which authorities directly enter and update relevant information. Once this information is entered into the online system, it is automatically uploaded to the Annual Authority Registration Database. We analyzed and reviewed records for all local economic development authorities included in this database.
Report of Authority Finances: State law (O.C.G.A. 36-81-8) requires all local authorities that are authorized to issue bonds to submit to DCA an annual report of revenues, expenditures, assets and debts. This information is submitted by local authorities to DCA using an online reporting mechanism called the Report of Registered Authority Finances (RAF). We obtained and reviewed records from 2008-2010 to determine if all registered authorities submitted required financial reports and if the reports included all bond issuances.
Debt Issuance Report: State law (O.C.G.A. 36-82-10) requires local government authorities empowered to enter into debt to report date individual debt issuances exceeding $1 million to DCA within 60 days of the issuance. Local authorities or their agents are required to email this information to DCA using a Microsoft Excel reporting form. DCA staff then review and verify the information prior to entering the information into the DIR database. We obtained and reviewed records from 2008-2010 and assessed the accuracy and completeness of data by comparing bonds reported in the RAF and in the DIR.
We found that DCA has developed the necessary forms and databases that provide a platform for reporting and maintaining local authority registration and financial data but it lacks procedures to ensure the accuracy and completeness of this information. However, because our audit objectives included assessing the completeness and accuracy of these databases, these limitations did not affect our scope and audit approach.
Government auditing standards require that we also report the scope of our work on internal control that is significant within the context of the audit objectives. We reviewed internal controls as part of our work on Objectives 2, 3, 4, and 5. Specific information related to the scope of our internal control work is described by objective in the methodology section below.

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Methodology
To identify the number of LDAs that exist and are active in each of Georgia's counties and municipalities, to determine the extent to which there is any duplication of effort among these authorities, we obtained a copy of DCA's authority registration database to identify the number of authorities operating in a particular jurisdiction by authority type. When multiple authorities of a similar type operating in a single jurisdiction were identified, we reviewed the enabling legislation or resolutions enacting each authority and interviewed the executive directors of those authorities to determine if there was a reason for the duplication and identify any inefficiencies that may be the result of having multiple authorities serving a similar purpose operating in the same jurisdiction.
To determine the extent to which DCA has appropriate procedures to ensure that all local development authority board members receive the training required by state law, we interviewed DCA management regarding their procedures for verifying the training status of local development authority board members. We also reviewed DCA's authority registration database to determine if authority personnel are required to enter the training status of their board members. In addition, audit team visited 11 local economic development authorities to determine if the authorities maintain records of each board member's training status.
To determine the extent to which DCA has appropriate procedures to ensure that registration and financial information local development authorities are required to submit is accurate and complete, we also analyzed data maintained in DCA's authority registration database, the report of authority finances database, and the debt issuance database. This analysis included a comparison of the information contained in each dataset to assess the accuracy and completeness of the data. We also interviewed DCA personnel to identify the procedures used by DCA to verify the accuracy and completeness of the information being submitted.
To determine if DCA has adequate controls to ensure the appropriate award and expenditure of state economic development program funds, we interviewed DCA management and reviewed DCA and OneGeorgia Authority policies and procedures for the applicable state economic development grant programs (REBA, EDGE, and Equity). We reviewed project files at DCA for 14 grants awarded from 2007 2012 to determine if the policies and procedures were adhered to. These projects included only those that were awarded to one of the 11 local economic development authorities included in our sample.
To determine the extent to which local development authorities have financial and management controls that provide transparency, avoid or mitigate conflicts of interests, and ensure the appropriate expenditure of public funds, audit team conducted site visits to the 11 authorities included in our sample interviewing each authority's executive director, reviewing state grant award project files, and reviewing annual financial audits.
This special examination was not conducted in accordance with generally accepted government auditing standards (GAGAS). However, it was conducted in accordance with Performance Audit Division policies and procedures for non-GAGAS engagements. These policies and procedures require that we plan and perform the engagement to obtain sufficient, appropriate evidence to provide a reasonable basis for the information reported and that data limitations be identified for the reader.

Local Development Authorities

Registered Local Development Authorities by County Calendar Year 2011

Appendix B: Registered Local Development Authorities by County

Appling County Development Authority of Appling County Southeast Georgia Regional Development Authority
Athens-Clarke Consolidated Government Athens-Clarke County Downtown Development Authority Athens-Clarke County Industrial Development Authority Development Authority of the Unified Government of Athens-Clarke County, Georgia Downtown Athens Development Authority Georgia Bioscience Joint Development Authority Joint Development Authority of Northeast Georgia
Atkinson County Atkinson County-Coffee County Joint Development Authority Development Authority of Atkinson County
Augusta/Richmond Consolidated Government Augusta Canal Authority Central Savannah River Area Unified Development Authority Development Authority of Richmond County Downtown Development Authority of Augusta-Richmond County
Bacon County Bacon County Development Authority Southeast Georgia Regional Development Authority
Baker County Development Authority of Baker County Joint Development Authority of Baker, Dougherty, Terrell, and Lee Counties
Baldwin County Development Authority of the City of Milledgeville and Baldwin County Fall Line Regional Development Authority
Banks County Development Authority of Banks County Joint Development Authority of Banks, Habersham and Rabun Counties
Barrow County Georgia Bioscience Joint Development Authority Joint Development Authority of Winder-Barrow County Winder-Barrow Industrial Building Authority
Bartow County Bartow-Cartersville Joint Development Authority Development Authority of Bartow County Joint Cartersville-Bartow County Regional Industrial Development Authority Joint Development Authority of Bartow County and Pickens County
Ben Hill County Ben Hill-Irwin Area Joint Development Authority Development Authority of Ben Hill County Fitzgerald/Ben Hill County Development Authority

Berrien County Berrien County Development Authority South Regional Joint Development Authority
Bibb County Central Georgia Joint Development Authority Development Authority of Bibb County Macon-Bibb County Industrial Authority Macon-Bibb County Urban Development Authority
Bleckley County Bleckley-Cochran Industrial Development Authority Ocmulgee Regional Joint Development Authority
Brantley County Brantley County Development Authority Southeast Georgia Joint Development Authority
Brooks County Brooks County Development Authority Development Authority of Brooks County, Georgia South Regional Joint Development Authority
Bryan County Development Authority of Bryan County Middle Coastal Unified Development Authority
Bulloch County Development Authority of Bulloch County Middle Coastal Unified Development Authority
Burke County Burke County Economic Development Authority Central Savannah River Area Unified Development Authority Development Authority of Burke County Joint Development Authority of Burke County and City of Waynesboro
Butts County Development Authority of Butts County Industrial Development Authority of Butts County
Calhoun County Southwest Georgia Joint Development Authority
Camden County Camden County Joint Development Authority Southeast Georgia Joint Development Authority
Candler County Candler County Industrial Authority Middle Coastal Unified Development Authority
(Continued on next page.)

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Local Development Authorities

Registered Local Development Authorities by County

Calendar Year 2011

(Continued)

Carroll County Carrollton Payroll Development Authority Development Authority of Carroll County Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties
Catoosa County Catoosa County Development Authority Development Authority of Catoosa County The Northwest Georgia Joint Development Authority
Charlton County Development Authority of the City of Folkston and Charlton County Southeast Georgia Joint Development Authority
Chatham County Middle Coastal Unified Development Authority Savannah Economic Development Authority
Chattooga County Chattooga County Development Authority Development Authority of Chattooga County The Northwest Georgia Joint Development Authority
Cherokee County Cherokee County Development Authority Development Authority of Cherokee County Lanier Joint Development Authority The Joint Development Authority of Cherokee County and Cobb County
Clay County Development Authority of Clay County Southwest Georgia Regional Development Authority Southwest Georgia Technology Authority
Clayton County Development Authority of Clayton County Joint Development Authority of Metropolitan Atlanta Redevelopment Authority of Clayton County
Clinch County Clinch County Development Authority South Regional Joint Development Authority
Cobb County Development Authority of Cobb County The Joint Development Authority of Cherokee County and Cobb County
Coffee County Atkinson County-Coffee County Joint Development Authority Douglas-Coffee County Industrial Authority
Colquitt County Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties Moultrie-Colquitt County Development Authority

Columbia County Central Savannah River Area Unified Development Authority Development Authority of Columbia County
Columbus/Muscogee Consolidated Government Development Authority of Columbus, Georgia Downtown Development Authority of Columbus, Georgia Valley Partnership Joint Development Authority
Cook County Adel Industrial Development Authority South Regional Joint Development Authority
Coweta County Coweta County Development Authority Coweta, Fayette, Meriwether Joint Development Authority Development Authority of Coweta County
Crawford County Central Georgia Joint Development Authority Development Authority of Crawford County
Crisp County Crisp-Dooly Joint Development Authority Development Authority of Crisp County
Cusseta-Chattahoochee Consolidated Government Chattahoochee County Industrial Development Authority Valley Partnership Joint Development Authority
Dade County Dade County Industrial Development Authority The Northwest Georgia Joint Development Authority
Dawson County Development Authority of Dawson County Joint Development Authority of Dawson, Lumpkin and White Counties
Decatur County Decatur County-Bainbridge Industrial Development Authority Development Authority of Bainbridge and Decatur County Southwest Georgia Joint Development Authority
DeKalb County DeKalb Private Hospital Authority Development Authority of DeKalb County Joint Development Authority of Dekalb County, Newton County, and Gwinnett County Joint Development Authority of Metropolitan Atlanta
Dodge County Dodge County/Eastman Development Authority Ocmulgee Regional Joint Development Authority
(Continued on next page.)

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Local Development Authorities

Registered Local Development Authorities by County

Calendar Year 2011

(Continued)

Dooly County Crisp-Dooly Joint Development Authority Dooly County Industrial Development Authority
Dougherty County Albany Dougherty Payroll Development Authority Development Authority of Dougherty County Joint Development Authority of Baker, Dougherty, Terrell, and Lee Counties
Douglas County Development Authority of Douglas County Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties West Georgia Joint Development Authority
Early County Development Authority of Early County Southwest Georgia Joint Development Authority
Effingham County Development Authority of Effingham County Effingham County Industrial Development Authority Middle Coastal Unified Development Authority
Elbert County Development Authority of Elbert County, Elberton and Bowman Elbert County Richard B. Russell Development Authority Joint Development Authority of Northeast Georgia
Emanuel County Development Authority of Emanuel County Development Authority of Emanuel County and the City of Swainsboro Emanuel County Development Authority Emanuel-Johnson County Development Authority
Evans County Evans County Industrial Development Authority Middle Coastal Unified Development Authority
Fannin County Fannin County Industrial Development Authority
Fayette County Coweta, Fayette, Meriwether Joint Development Authority Fayette County Development Authority
Floyd County Development Authority of Floyd County Gordon County - Floyd County Development Authority Rome-Floyd County Development Authority
Forsyth County Development Authority of Forsyth County Lanier Joint Development Authority

Franklin County Franklin County Industrial Building Authority Joint Development Authority of Franklin, Hart and Stephens Counties
Fulton County Development Authority of Fulton County Joint Development Authority of Metropolitan Atlanta
Georgetown-Quitman Consolidated Government Quitman County Development Authority Southwest Georgia Regional Development Authority Southwest Georgia Technology Authority
Gilmer County Development Authority of Gilmer County Joint Development Authority of Gilmer County and Pickens County
Glascock County Central Savannah River Area Unified Development Authority Glascock County Industrial Development Authority
Glynn County Brunswick and Glynn County Development Authority Southeast Georgia Joint Development Authority
Gordon County Development Authority of Gordon County Gordon County - Floyd County Development Authority
Grady County Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties Joint Grady County Development Authority
Greene County Greene County Development Authority Lake Oconee Area Development Authority
Gwinnett County Development Authority of Gwinnett County Georgia Bioscience Joint Development Authority Joint Development Authority of Dekalb County, Newton County, and Gwinnett County
Habersham County Habersham County Development Authority Joint Development Authority of Banks, Habersham and Rabun Counties
Hall County Gainesville and Hall County Development Authority Lanier Joint Development Authority
Hancock County Central Savannah River Area Unified Development Authority Sparta-Hancock County Development Authority
(Continued on next page.)

30

Local Development Authorities

Registered Local Development Authorities by County

Calendar Year 2011

(Continued)

Haralson County

Jones County

Development Authority of Haralson County

Central Georgia Joint Development Authority

Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties

Development Authority of Jones County

Harris County

Lamar County

Development Authority of Harris County

Barnesville-Lamar County Industrial Development Authority

Valley Partnership Joint Development Authority

City of Barnesville and County of Lamar Development Authority

Hart County

West Central Georgia Joint Development Authority

Hart County Industrial Building Authority

Lanier County

Joint Development Authority of Franklin, Hart and Stephens Counties

Development Authority of Lanier County

Heard County

South Regional Joint Development Authority

Development Authority of Heard County

Laurens County

Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties

City of Dublin and County of Laurens Development Authority

West Point Lake Development Authority

Dublin-Laurens County Development Authority

Henry County

Laurens-Treutlen Joint Development Authority

Henry County Development Authority

Main Street Dublin-The Downtown Development Authority of Dublin

Joint Development Authority of Metropolitan Atlanta

Lee County

Houston County

Development Authority of Lee County

Central Georgia Joint Development Authority

Joint Development Authority of Baker, Dougherty, Terrell, and Lee Counties

Development Authority of Houston County

Liberty County

Houston County Development Authority

Liberty County Industrial Authority

Middle Georgia Regional Development Authority

Middle Coastal Unified Development Authority

Irwin County

Lincoln County

Ben Hill-Irwin Area Joint Development Authority

Central Savannah River Area Unified Development Authority

Ocilla-Irwin County Industrial Development Authority

Lincoln County Development Authority

Jackson County

Long County

Jackson County Industrial Development Authority

Middle Coastal Unified Development Authority

Joint Development Authority of Northeast Georgia

Lowndes County

Jasper County

Development Authority of Lowndes County

Development Authority of Jasper County

South Regional Joint Development Authority

Joint Development Authority of Jasper County, Morgan County, Newton County, and Walton County

Valdosta-Lowndes County Industrial Authority

Jeff Davis County

Lumpkin County

Joint Development Authority of Jeff Davis County, Hazlehurst and Denton, Georgia

Development Authority of Lumpkin County, Georgia

Southeast Georgia Regional Development Authority

Joint Development Authority of Dawson, Lumpkin and White Counties

Jefferson County

Macon County

Central Savannah River Area Unified Development Authority

Development Authority of Macon County

Development Authority of Jefferson County, Georgia

Schley-Sumter-Macon Counties Joint Development Authority

Jenkins County

Madison County

Central Savannah River Area Unified Development Authority

Joint Development Authority of Northeast Georgia

Development Authority of Jenkins County

Madison County Industrial Development and Building Authority

Jenkins County Development Authority

Marion County

Johnson County

Valley Partnership Joint Development Authority

Development Authority of Johnson County, Georgia

Emanuel-Johnson County Development Authority

(Continued on next page.)

31

Local Development Authorities

Registered Local Development Authorities by County

Calendar Year 2011

(Continued)

McDuffie County

Peach County

Central Savannah River Area Unified Development Authority

Development Authority of Peach County

Development Authority of McDuffie County

Middle Georgia Regional Development Authority

Development Authority of McDuffie County and the City of Thomson

Pickens County

McIntosh County

Joint Development Authority of Bartow County and Pickens County

McIntosh County Industrial Development Authority

Joint Development Authority of Gilmer County and Pickens County

Southeast Georgia Joint Development Authority

The Development Authority of Pickens County

Meriwether County

Pierce County

Coweta, Fayette, Meriwether Joint Development Authority

Pierce County Industrial Development and Building Authority

Joint Development Authority of Meriwether County and the City of Hogansville

Pike County

Meriwether County Industrial Development Authority

Development Authority of Pike County

Miller County

West Central Georgia Joint Development Authority

Miller County Development Authority

Polk County

Southwest Georgia Joint Development Authority

Development Authority of Polk County

Mitchell County

Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties

Development Authority of Mitchell County

Pulaski County

Join Development Authority of Mitchell County and Pelham

Middle Georgia Regional Development Authority

Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties

Putnam County

Mitchell County Development Authority

Development Authority of Putnam County

Monroe County

Lake Oconee Area Development Authority

Central Georgia Joint Development Authority

Putnam Development Authority

Development Authority of Monroe County

Rabun County

Monroe County Industrial Development Authority

Development Authority of Rabun County

Montgomery County

Joint Development Authority of Banks, Habersham and Rabun Counties

Middle Coastal Unified Development Authority

Rabun County Economic Development Authority

Montgomery County Development Authority

Randolph County

Morgan County

Development Authority of Randolph County

Development Authority of Morgan County

Randolph County Development Authority

Joint Development Authority of Jasper County, Morgan County, Newton County, and Walton County

Southwest Georgia Regional Development Authority

Newton County

Southwest Georgia Technology Authority

Joint Development Authority of Dekalb County, Newton County, and Gwinnett County

Rockdale County

Joint Development Authority of Jasper County, Morgan County, Newton County, and Walton County

Development Authority of Rockdale County

Newton County Industrial Development Authority

Joint Development Authority of Metropolitan Atlanta

Oconee County

Schley County

Georgia Bioscience Joint Development Authority

Schley-Sumter-Macon Counties Joint Development Authority

Oconee County Industrial Development Authority

Screven County

Oglethorpe County

Development Authority of Screven County

Joint Development Authority of Northeast Georgia

Middle Coastal Unified Development Authority

Oglethorpe Development Authority

Screven County Development Authority

Paulding County

Seminole County

Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties

Development Authority of Seminole County and Donalsonville

Paulding County Industrial Building Authority

Southwest Georgia Joint Development Authority

West Georgia Joint Development Authority

(Continued on next page.)

32

Local Development Authorities

Registered Local Development Authorities by County

Calendar Year 2011

(Continued)

Spalding County Griffin-Spalding County Development Authority
Stephens County Joint Development Authority of Franklin, Hart and Stephens Counties Stephens County Development Authority
Stewart County Southwest Georgia Regional Development Authority Southwest Georgia Technology Authority
Sumter County Americus-Sumter Payroll Development Authority Schley-Sumter-Macon Counties Joint Development Authority
Talbot County Development Authority of Talbot County Valley Partnership Joint Development Authority
Taliaferro County Central Savannah River Area Unified Development Authority Development Authority of Taliaferro County, Georgia
Tattnall County Middle Coastal Unified Development Authority Tattnall County Development Authority
Taylor County Taylor County Development Authority Valley Partnership Joint Development Authority
Telfair County Development Authority of Telfair County Joint Development Authority of Hazlehurst, Lumber City and Telfair County Ocmulgee Regional Joint Development Authority
Terrell County Joint Development Authority of Baker, Dougherty, Terrell, and Lee Counties Terrell County Development Authority
Thomas County Joint Development Authority of Brooks, Colquitt, Grady, Mitchell, and Thomas Counties Thomasville Payroll Development Authority
Tift County Development Authority of Tift County Tift County Development Authority
Toombs County Middle Coastal Unified Development Authority Toombs County Development Authority
Treutlen County Laurens-Treutlen Joint Development Authority Treutlen County Development Authority

Troup County Joint Development Authority of Carroll, Haralson, Polk, Heard and Troup Counties Troup County Development Authority Troup County Public Facilities Authority West Point Lake Development Authority
Turner County Turner County Development Authority
Twiggs County Central Georgia Joint Development Authority Development Authority of the City of Jeffersonville and Twiggs County
Union County Development Authority of Union County
Upson County Thomaston-Upson County Industrial Development Authority West Central Georgia Joint Development Authority
Walker County The Northwest Georgia Joint Development Authority Walker County Development Authority
Walton County Development Authority of Walton County Joint Development Authority of Jasper County, Morgan County, Newton County, and Walton County
Ware County Okefenokee Area Development Authority Waycross and Ware County Development Authority
Warren County Central Savannah River Area Unified Development Authority Development Authority of Warren County
Washington County Central Savannah River Area Unified Development Authority Development Authority of Washington County
Wayne County Development Authority of Wayne County Southeast Georgia Joint Development Authority Wayne County Industrial Development Authority
Webster County Unified Webster County Industrial Development Authority
Wheeler County Development Authority of Wheeler County Downtown Development Authority of the City of Glenwood, Georgia Middle Coastal Unified Development Authority
White County Development Authority of White County Joint Development Authority of Dawson, Lumpkin and White Counties
(Continued on next page.)

33

Whitfield County Dalton-Whitfield County Joint Development Authority Development Authority of Whitfield County
Wilcox County Ocmulgee Regional Joint Development Authority Wilcox County Industrial Development Authority
Wilkes County Central Savannah River Area Unified Development Authority Washington-Wilkes Payroll Development Authority
Wilkinson County Development Authority of Wilkinson County Fall Line Regional Development Authority
Worth County Development Authority of Worth County Worth County Economic Development Authority
Source: Department of Community Affairs' Registration Data

Registered Local Development Authorities by County Calendar Year 2011 (Continued)

34

Local Development Authorities

Local Development Authorities

Appendix C: Registered Local Development Authorities by City

Registered Local Development Authorities by City Calendar Year 2011

Acworth City Acworth Downtown Development Authority
Adairsville City Adairsville Development Authority Adairsville Downtown Development Authority
Adel City Adel Industrial Development Authority Downtown Development Authority of Adel, Georgia
Albany City Albany Dougherty Payroll Development Authority Albany-Dougherty Inner City Authority Downtown Development Authority of Albany, Georgia
Aldora Town Bacon County Development Authority
Alma City Alma Downtown Development Authority Bacon County Development Authority
Alpharetta City Development Authority of Alpharetta
Americus City Americus-Sumter Payroll Development Authority Development Authority of the City of Americus Downtown Development Authority of the Mayor and City Council of Americus
Arabi Town Arabi Industrial Development Authority
Arlington City Downtown Development Authority of the City of Arlington Georgia Economic Development Authority of Arlington, Georgia
Ashburn City Development Authority of the City of Ashburn Downtown Development Authority of the City of Ashburn
Athens-Clarke Consolidated Government Athens-Clarke County Downtown Development Authority Athens-Clarke County Industrial Development Authority Development Authority of the Unified Government of Athens-Clarke County, Georgia Downtown Athens Development Authority Georgia Bioscience Joint Development Authority Joint Development Authority of Northeast Georgia
Atlanta City Downtown Development Authority of the City of Atlanta The Atlanta Development Authority
Auburn City Auburn Downtown Development Authority

Augusta/Richmond Consolidated Government Augusta Canal Authority Central Savannah River Area Unified Development Authority Development Authority of Richmond County Downtown Development Authority of Augusta-Richmond County
Austell City Downtown Development Authority of Austell Industrial Development Authority of Austell
Avondale Estates City Downtown Development Authority of Avondale Estates
Baconton City Downtown Development Authority of the City of Baconton
Bainbridge City Decatur County-Bainbridge Industrial Development Authority Development Authority of Bainbridge and Decatur County The Downtown Development Authority of Bainbridge, Georgia
Barnesville City Barnesville-Lamar County Industrial Development Authority City of Barnesville and County of Lamar Development Authority Downtown Development Authority of Barnesville West Central Georgia Joint Development Authority
Baxley City Downtown Development Authority of Baxley
Bishop Town Oconee County Industrial Development Authority
Blackshear City Pierce County Industrial Development and Building Authority
Blairsville City Downtown Development Authority of Blairsville
Bogart City Oconee County Industrial Development Authority
Boston City Boston Downtown Development Authority
Bowman City Development Authority of Elbert County, Elberton and Bowman
Braselton Town Braselton Downtown Development Authority Downtown Development Authority of Braselton
Bremen City Downtown Development Authority of Bremen
Brunswick City Brunswick and Glynn County Development Authority Downtown Development Authority of Brunswick
(Continued on next page.)

35

Local Development Authorities

Registered Local Development Authorities by City

Calendar Year 2011

(Continued)

Buford City

College Park City

Downtown Development Authority of the City of Buford

College Park Business and Industrial Development Authority

Industrial Development Authority of the City of Buford

Colquitt City

Byron City

The City of Colquitt Downtown Development Authority

Byron Development Authority

Columbus/Muscogee Consolidated Government

Byron Downtown Development Authority

Development Authority of Columbus, Georgia

Cairo City

Downtown Development Authority of Columbus, Georgia

City of Cairo Development Authority

Valley Partnership Joint Development Authority

City of Cairo Downtown Development Authority

Conyers City

Joint Grady County Development Authority

Development Authority of Conyers, Georgia

Calhoun City

Cordele City

Calhoun Downtown Development Authority

Downtown Development Authority of Cordele

Camilla City

Cornelia City

The Development Authority of the City of Camilla

Downtown Development Authority of Cornelia

Canton City

Covington City

Canton Development Authority

City of Covington Downtown Development Authority

Downtown Development Authority of the City of Canton, Georgia

Cumming City

Carrollton City

Development Authority of Cumming

Carrollton Payroll Development Authority

Cusseta-Chattahoochee Consolidated Government

Cartersville City

Chattahoochee County Industrial Development Authority

Bartow-Cartersville Joint Development Authority

Valley Partnership Joint Development Authority

Cartersville Development Authority

Dahlonega City

Cartersville Downtown Development Authority

Downtown Development Authority of the City of Dahlonega

Development Authority of Cartersville

Dallas City

Joint Cartersville-Bartow County Regional Industrial Development Authority

Downtown Development Authority of the City of Dallas, Georgia

Cave Spring City

Dalton City

Downtown Development Authority of Cave Spring, Georgia

Dalton-Whitfield County Joint Development Authority

Cedartown City

Development Authority of the City of Dalton

Cedartown Development Authority

Downtown Dalton Development Authority

Cedartown Downtown Development Authority

Danielsville City

Chatsworth City

Downtown Development Authority of the City of Danielsville

Downtown Development Authority of Chatsworth

Dawson City

Chickamauga City

City of Dawson Development Authority

Walker County Development Authority

Downtown Development Authority of the City of Dawson

Claxton City

Dawsonville City

Evans County Industrial Development Authority

Downtown Development Authority of Dawsonville, Georgia

Clayton City

Decatur City

City of Clayton Downtown Development Authority

Downtown Development Authority of the City of Decatur

Cleveland City

Demorest City

Downtown Development Authority Cleveland

Downtown Development Authority of Demorest, GA

Cochran City

Denton City

Bleckley-Cochran Industrial Development Authority

Joint Development Authority of Jeff Davis County, Hazlehurst and Denton, Georgia

Downtown Development Authority of the City of Cochran

(Continued on next page.)

36

Local Development Authorities

Registered Local Development Authorities by City

Calendar Year 2011

(Continued)

Donalsonville City

Fort Gaines City

Development Authority of Seminole County and Donalsonville

Downtown Development Authority of Fort Gaines, Georgia

Downtown Development Authority of Donalsonville

Fort Oglethorpe City

Douglas City

Downtown Development Authority of the City of Fort Oglethorpe, Georgia

Douglas-Coffee County Industrial Authority

Fort Valley City

Downtown Development Authority of Douglas

Fort Valley Downtown Development Authority

Douglasville City

Franklin City

Development Authority of Douglas County

West Point Lake Development Authority

Development Authority of the City of Douglasville, Georgia

Gainesville City

Downtown Development Authority of the City of Douglasville

Gainesville and Hall County Development Authority

Dublin City

Garden City

City of Dublin and County of Laurens Development Authority

Downtown Development Authority for the City of Garden City

Dublin-Laurens County Development Authority

Georgetown-Quitman Consolidated Government

Main Street Dublin-The Downtown Development Authority of Dublin

Quitman County Development Authority

Duluth City

Southwest Georgia Regional Development Authority

City of Duluth Downtown Development Authority

Southwest Georgia Technology Authority

Dunwoody City

Glennville City

Dunwoody Development Authority

Glennville Development Authority

East Point City

Glennville Downtown Development Authority

East Point Business and Industrial Development Authority

Grantville City

Eastman City

City of Grantville Downtown Development Authority

Dodge County/Eastman Development Authority

Gray City

Eatonton City

Downtown Development Authority of Gray

Eatonton Downtown Development Authority

Grayson City

Elberton City

City of Grayson Downtown Development Authority

Development Authority of Elbert County, Elberton and Bowman

Greensboro City

Elberton Downtown Development Authority d/b/a MainStreet Elberton

Downtown Development Authority of the City of Greensboro

Fairburn City

Lake Oconee Area Development Authority

Development Authority of Fairburn

Griffin City

Downtown Development Authority of Fairburn

Griffin-Spalding County Development Authority

Fayetteville City

The Downtown Development Authority of the City of Griffin, Georgia

City of Fayetteville Downtown Development Authority

Hampton City

Fitzgerald City

Downtown Development Authority of Hampton

Ben Hill-Irwin Area Joint Development Authority

Hapeville City

Downtown Development Authority of Fitzgerald

Hapeville Development Authority

Fitzgerald/Ben Hill County Development Authority

Hartwell City

Flowery Branch City

Downtown Development Authority of Hartwell, Georgia

Flowery Branch Development Authority

Hawkinsville City

Folkston City

Hawkinsville Downtown Development Authority

Development Authority of the City of Folkston and Charlton County

Hazlehurst City

Forsyth City

Joint Development Authority of Hazlehurst, Lumber City and Telfair County

Downtown Development Authority of Forsyth

Joint Development Authority of Jeff Davis County, Hazlehurst and Denton, Georgia

(Continued on next page.)

37

Local Development Authorities

Registered Local Development Authorities by City

Calendar Year 2011

(Continued)

Hinesville City

Lawrenceville City

Downtown Development Authority of Hinesville, Georgia

Development Authority of Lawrenceville, GA

Liberty County Industrial Authority

Downtown Development Authority of Lawrenceville, GA

Hogansville City

Lexington City

Hogansville Development Authority

Lexington Downtown Development Authority

Hogansville Downtown Development Authority

Lilburn City

Joint Development Authority of Meriwether County and the City of Hogansville

Lilburn Downtown Development Authority

West Point Lake Development Authority

Locust Grove City

Holly Springs City

Downtown Development Authority of the City of Locust Grove

Downtown Development Authority of Holly Springs

Loganville City

Ideal City

Downtown Development Authority of the City of Loganville

Ideal Downtown Development Authority

Loganville Development Authority

Jackson City

Lookout Mountain City

Downtown Development Authority of the City of Jackson

Walker County Development Authority

Jasper City

Lumber City

City of Jasper Industrial Authority

Joint Development Authority of Hazlehurst, Lumber City and Telfair County

Development Authority of the City of Jasper

Lumpkin City

Jefferson City

Lumpkin Downtown Development Authority

Development Authority of Jefferson, Georgia

Lyons City

Jeffersonville City

Lyons Downtown Development Authority

Development Authority of the City of Jeffersonville and Twiggs County

Macon City

Downtown Development Authority of the City of Jeffersonville

Macon-Bibb County Industrial Authority

Jesup City

Macon-Bibb County Urban Development Authority

City of Jesup Downtown Development Authority

Madison City

Kennesaw City

Downtown Development Authority of Madison

Kennesaw Development Authority

Manchester City

Kennesaw Downtown Development Authority

The Development Authority of the City of Manchester

Kingsland City

Valley Partnership Joint Development Authority

Camden County Joint Development Authority

Marietta City

Kingsland Development Authority

Development Authority of the City of Marietta

Kingsland Downtown Development Authority

Downtown Marietta Development Authority

LaFayette City

Maysville Town

Development Authority of LaFayette

Downtown Development Authority of Maysville

Downtown Development Authority of the City of LaFayette

Milan City

Walker County Development Authority

City of Milan Development Authority

LaGrange City

Milledgeville City

Development Authority of LaGrange

Development Authority of the City of Milledgeville and Baldwin County

Downtown Development Authority of the City of LaGrange

Fall Line Regional Development Authority

Downtown LaGrange Development Authority

Milledgeville MainStreet/The Downtown Development Authority of the City of Milledgeville

LaGrange Development Authority

Millen City

West Point Lake Development Authority

Downtown Development Authority of Millen, Georgia

Lavonia City

Milner City

Lavonia Downtown Development Authority

Downtown Development Authority of the City of Milner

(Continued on next page.)

38

Monroe City Downtown Development Authority of the City of Monroe
Montezuma City Montezuma Downtown Development Authority
Monticello City Development Authority of Jasper County Downtown Development Authority of Monticello, Georgia
Morrow City Downtown Development Authority of the City of Morrow, Georgia
Moultrie City Downtown Development Authority of Moultrie Moultrie-Colquitt County Development Authority
Nashville City Nashville Downtown Development Authority
Newnan City Development Authority of the City of Newnan Downtown Development Authority of the City of Newnan, Georgia
Norcross City Downtown Development Authority of the City of Norcross Norcross Development Authority
North High Shoals Town Oconee County Industrial Development Authority
Oakwood City Development Authority of the City of Oakwood
Ocilla City Ben Hill-Irwin Area Joint Development Authority Ocilla-Irwin County Industrial Development Authority
Offerman City Pierce County Industrial Development and Building Authority
Oglethorpe City Oglethorpe Downtown Development Authority
Palmetto City Development Authority of Palmetto
Patterson City Pierce County Industrial Development and Building Authority
Pearson City City of Pearson, Georgia Industrial Authority
Pelham City Join Development Authority of Mitchell County and Pelham Pelham City Economic Authority, Inc.
Perry City Downtown Development Authority of the City of Perry

Registered Local Development Authorities by City Calendar Year 2011 (Continued)
Pine Lake City Pine Lake Downtown Development Authority
Pitts City Downtown Development Authority of Pitts, Georgia
Pooler City Pooler Development Authority
Powder Springs City Development Authority of Powder Springs Powder Springs Downtown Development Authority
Quitman City Brooks County Development Authority Quitman Development Authority
Remerton City Remerton Downtown Development Authority
Richland City Development Authority of the City of Richland Downtown Development Authority of the City of Richland, Georgia
Ringgold City Downtown Development Authority of the City of Ringgold, Georgia
Riverdale City Riverdale Development Authority
Rockmart City Rockmart Development Authority
Rome City Downtown Development Authority of the City of Rome Rome-Floyd County Development Authority
Rossville City Downtown Development Authority of the City of Rossville Walker County Development Authority
Roswell City Development Authority of the City of Roswell Downtown Development Authority of the City of Roswell
Royston City Downtown Development Authority of the City of Royston
Sandersville City Sandersville Downtown Development Authority
Sandy Springs City City of Sandy Springs Development Authority
Sardis City Sardis Development Authority
(Continued on next page.)

39

Local Development Authorities

Savannah City Development Authority for the City of Savannah Downtown Development Authority for the City of Savannah Savannah Economic Development Authority
Senoia City Downtown Development Authority of the City of Senoia
Shady Dale City Development Authority of Jasper County
Smithville City Downtown Development Authority of the City of Smithville
Smyrna City Downtown Smyrna Development Authority Smyrna Downtown Area Development Corporation
Snellville City Downtown Development Authority of Snellville, Georgia The Development Authority of Snellville, Georgia
Social Circle City Downtown Development Authority of Social Circle Social Circle Development Authority
Soperton City Soperton Downtown Development Authority
Sparta City Sparta-Hancock County Development Authority
St. Marys City Camden County Joint Development Authority Development Authority of St. Marys St. Marys Downtown Development Authority
Statesboro City Downtown Statesboro Development Authority
Stockbridge City City of Stockbridge, Georgia Downtown Development Authority
Stone Mountain City Downtown Development Authority of the City of Stone Mountain
Summerville City Development Authority of the City of Summerville, Georgia
Suwanee City Suwanee Downtown Development Authority
Swainsboro City Downtown Development Authority For The City of Swainsboro
Sylvania City City of Sylvania Downtown Development Authority
Sylvester City Downtown Development Authority of Sylvester Sylvester Development Authority

Registered Local Development Authorities by City Calendar Year 2011 (Continued)
Tallapoosa City Downtown Development Authority of the City of Tallapoosa Tallapoosa Development Authority The Development Authority of the City of Tallapoosa
Temple City Temple Downtown Development Authority
Tennille City Downtown Development Authority of Tennille, Georgia
Thomaston City Thomaston Downtown Development Authority West Central Georgia Joint Development Authority
Thomasville City Downtown Development Authority of the City Thomasville Thomasville Payroll Development Authority
Thomson City Development Authority of McDuffie County and the City of Thomson Downtown Development Authority of the City of Thomson
Tifton City Downtown Development Authority of the City of Tifton
Toccoa City Downtown Development Authority of Toccoa
Trenton City City of Trenton Downtown Development Authority
Unadilla City Downtown Development Authority of the City of Unadilla
Union Point City Downtown Development Authority of Union Point, GA Lake Oconee Area Development Authority
Valdosta City Central Valdosta Development Authority Downtown Development Authority for the City of Valdosta, Georgia Valdosta-Lowndes County Industrial Authority
Vidalia City Development Authority of Vidalia Vidalia Development Authority
Vienna City Development Authority of the City of Vienna Downtown Development Authority of the City of Vienna
Villa Rica City Development Authority of Douglas County Villa Rica Development Authority Villa Rica Downtown Development Authority
Wadley City Development Authority of the City of Wadley, GA
(Continued on next page.)

40

Local Development Authorities

Local Development Authorities

Registered Local Development Authorities by City

Calendar Year 2011

(Continued)

Walnut Grove City Downtown Development Authority of Walnut Grove
Warner Robins City

Whigham City Joint Grady County Development Authority
Willacoochee City

Development Authority of Warner Robins Warrenton City
Downtown Development Authority of the City of Warrenton

City of Willacoochee Development Authority Winder City
Joint Development Authority of Winder-Barrow County

Washington City City of Washington Downtown Development Authority Washington-Wilkes Payroll Development Authority
Watkinsville City

The Winder Downtown Development Authority Winder-Barrow Industrial Building Authority Woodbine City Camden County Joint Development Authority

Oconee County Industrial Development Authority Waycross City
Downtown Waycross Development Authority

Woodbine Downtown Development Authority Woodbury City
Development Authority of the City of Woodbury

Okefenokee Area Development Authority Waynesboro City
Joint Development Authority of Burke County and City of Waynesboro

Downtown Development Authority of Woodbury Woodstock City
Downtown Development Authority of Woodstock

Waynesboro Downtown Development Authority Webster County Unified
Webster County Industrial Development Authority

Wrightsville City Wrightsville Development Authority, Inc.
Zebulon City

West Point City Downtown West Point Development Authority Valley Partnership Joint Development Authority

Downtown Development Authority of the City of Zebulon West Central Georgia Joint Development Authority

West Point Development Authority West Point Lake Development Authority

Source: Department of Community Affairs' Registration Data

41

Local Development Authorities

42

The Performance Audit Division was established in 1971 to conduct in-depth reviews of state-funded programs. Our reviews determine if programs are meeting goals and objectives; measure program results and effectiveness; identify alternate methods to meet goals; evaluate efficiency of resource allocation; assess compliance with laws and regulations; and provide credible management information to decision-makers. For more information, contact
us at (404)657-5220 or visit our website at www.audits.ga.gov.