For More Information Contact:
Alana Sawchuk, Executive Assistant to the Comptroller asawchuk@dutchessny.gov / comptroller@dutchessny.gov (845) 486-2050
The Dutchess County Comptroller’s Office has released its audit report of space leased by and from the County for various government functions for the period January 1, 2024, through December 31, 2024. Per the Governmental Accounting Standards Board (GASB) Statement No. 87, a lease is defined as a contract granting the right to use another entity’s non-financial asset, such as a building or land, for a specific period of time in a mutual transaction.
The scope of this review was limited to long-term lease agreements for County-owned and occupied buildings and real property. For fiscal year 2024, the total expenditures for long-term real property leases reviewed was $3,055,950, and the total revenue from lease agreements was $724,850.
The Comptroller’s Office identified substantive findings relating to a lapse in Legislative oversight of lease agreements, lease terms exceeding the recommended length, and instances of County-owned spaces being occupied without active lease agreements.
“Dutchess County Administrative Code Section 32.01 clearly requires Legislative approval of County leases. Yet only 8 of the current active leases have been approved,” said the Comptroller. “Our argument is not entirely a legal one,” continued the Comptroller. “The County Legislature should be approving all expenditure and revenue leases because it’s good practice and good government. Leases span multiple years, sometimes have unique conditions, contribute to our long-term liabilities, and have no formal bidding process, so there is merit to involving the Legislature as an additional source of oversight.”
Other findings included 12 of 29 active leases being signed after the lease term began, two in-kind leases that reported no revenue, three cases of tenants occupying County property without a lease, and a lack of formalized Policies and Procedures regarding lease agreements.
The Comptroller’s Office would like to thank the Dutchess County Department of Public Works, as well as the County Attorney’s Office for their assistance in the preparation of this audit.
The Dutchess County Building Leases Audit Report can be found here (.pdf).
