1/25/2013 12:47:46 PM
Officers of Albany Nanotech Complex safeguarding public funds
Thomas P. DiNapoli - Comptroller
For Immediate Release: January 25, 2012
Fuller Road Management Corp., the not for profit corporation that
runs the State University at Albany’s College of Nanoscale Science and
Engineering, is fulfilling its duties to support and provide
appropriate internal controls over operations and activities, and
promoted an ethical business climate at the multi-billion dollar
facility, according to a report released today by State Comptroller Thomas P. DiNapoli.
“The College’s nanotechnology research facilities receive
billions of dollars from the state and private companies from across the
globe,” DiNapoli said. “FRMC officers, directors and committee members
have done well to make sure taxpayer and private dollars are being
safeguarded and being spent appropriately.”
DiNapoli’s auditors found one exception to an otherwise
strong internal control environment. Two Board Directors also serve on
the Board of First Niagara Financial Group, which was paid more than
$100,000 by FRMC for transaction fees. This potential conflict of
interest and the related transaction fees were not initially disclosed
as required on FRMC’s 2010 Internal Revenue Service Form 990. Both
directors properly disclosed their relationship with First Niagara on
the FRMC Conflict of Interest Disclosure Statement.
After auditors brought the omission on the IRS form to the
attention of FRMC officials, the corporation submitted a revised IRS 990
with the required disclosures. FRMC officials have now hired a new
independent auditor to help ensure that in the future there will be full
compliance with regulatory reporting requirements.
The NanoTech Complex is dedicated to nanotechnology
research, development and prototyping, as well as education. The complex
includes five buildings with more than 800,000 square feet of office,
laboratory and classroom space, including 80,000 square feet of
cleanroom facilities. Private and public investment in the complex to
date totals nearly $14 billion.
DiNapoli’s auditors recommended FRMC:
- Ensure its officers, directors and committee members
properly disclose all pertinent business relationships they have with
the FRMC and any corresponding financial transactions as required by
applicable law, rule, and regulation; and
- Continue to maintain the Accounting Procedures Manual.
For a copy of the report visit: http://www.osc.state.ny.us/audits/allaudits/093013/12s26.pdf