Audit finds poor financial management by CNY Regional Market Authority

The Central New York Regional Market Authority’s financial position has deteriorated and will continue to see annual net losses if measures are not taken to increase revenues and reduce expenses, according to an audit released Tuesday by state Comptroller Tom DiNapoli’s office.

The audit found the Syracuse-based public authority, which operates a farmers market and flea market to help vendors sell their products and has programs and services to promote agriculture in the region, has seen a total net decline from $6 million at the start of fiscal year 2020-21 to $4.9 million at the end of fiscal year 2022-23. Cash available to pay operating costs declined from $502,807 to a deficit of $6,539 over the same time period.

Auditors also found the facilities need tens of millions of dollars in renovations and estimates without changes, it could have a $410,000 shortfall in commercial lease revenues by the end of this fiscal year.

In addition, the audit said the authority’s board did not properly manage the authority’s financial condition, including not developing realistic budgets, not monitoring operations and expenses, and not doing a thorough analysis before spending over $2 million on a warehouse that needs extensive renovations and has been a drain on the authority’s budget.

“The Central New York Regional Market Authority board and officials need to turn its financial operations around before its fiscal situation gets worse. I am glad they took our findings and recommendations seriously and are working on a corrective action plan,” DiNapoli said in a statement.

The audit recommends the board take immediate measures to reduce spending, increase revenues, or both; adopt realistic budgets, monitor actual results, and address shortfalls; and prioritize critical needs and fill rental space. In response to the audit, the board president said the authority agreed with the financial findings of the audit and is acting on the recommendations.

The board consists of appointees from Onondaga, Oswego, Cayuga, Madison, Cortland, Oneida and Wayne counties, as well as the commissioner of the state’s Department of Agriculture and Markets.