Audit Finds Serious And Pervasive Problems With TNInvestco Program

Tuesday, November 13, 2012

Tennessee’s TNInvestco Program, which is administered by the state Department of Economic and Community Development (ECD), has serious and pervasive problems, according to report released on Tuesday by the Comptroller’s Division of State Audit.

TNInvestco was launched in 2009 as a program that provides tax credits to businesses which invest in certain types of start-up companies. The program was launched as a way to create jobs, foster entrepreneurial activity and infuse fledgling companies with capital. Recipients of the tax credits are chosen through an application process that requires them to meet certain criteria in order to qualify.

The Comptroller’s report details that the program was launched without adequate safeguards in place to determine that the companies receiving start-up funding were actually eligible to do so. Those safeguards are still lacking.

Auditors found that ECD failed to:

·         complete adequate annual reviews;

·         complete its annual report; or

·         evaluate program risks in its annual risk assessment.

Auditors also found that ECD did not ensure that the companies receiving tax credits:

·         completed statutorily-required investment strategy scorecards;

·         provided required accounting reports of specific procedures; or

·         provided audited financial statements in a timely fashion.

Without adequate documentation, top ECD officials might have difficulty determining if the required investment strategy benchmarks are being met and if investments are free from fraud, waste or abuse.  Furthermore, the lack of documentation raises questions about how accurate reports can be provided to the governor’s office.  

The audit also highlighted some other issues with ECD that are unrelated to the TNInvestco program.

To view the report online, go to: http://www.comptroller.tn.gov/repository/SA/pa12060.pdf

 


Chattanooga Chamber Presents Business Calendar For March 28-31

TUES/28 Reality Check at Ivy Academy 9:45-11 a.m. Mile Straight Baptist Church: 8448 Springfield Rd. Reality Check teaches 9th graders budgeting and emphasizes the connection between education and income by having roleplay as heads of household with a set budget. To volunteer for this Chattanooga Chamber career readiness program, contact Cathy Humble at  423.763.4321 ... (click for more)

TN Supreme Court Holds That Indigent Prisoner's Case Was Properly Dismissed

The Tennessee Supreme Court has held that an indigent prisoner’s case was properly dismissed pursuant to Tennessee Code Annotated section 41-21-812 when the prisoner had outstanding unpaid court costs from prior litigation.  Tennessee Code Annotated section 41-21-812 authorizes the rejection of certain new claims in court from an indigent inmate who has unpaid fees, taxes, ... (click for more)

Storm Costs EPB $2.5 Million; Smart Grid Helped Ease The Pain

Tuesday night's fierce storm cost EPB an estimated $2.5 million, President David Wade said Friday. He said the city utility will have to bear all the cost - unlike when it got federal aid after spending $18 million following tornadoes that raked the Chattanooga area in 2012. Mr. Wade said EPB's Smart Grid helped ease the pain, bringing back online about 27,000 affected customers ... (click for more)

1 Killed, 1 Injured In Brainerd Shooting

One person was killed and a second person injured in a shooting in Brainerd on Thursday night. The call was to 3301 Pinewood Ave. at 7:05 p.m. It was reported that a silver vehicle was seen leaving the scene. One of the persons shot, 23-year-old Antonio Baldwin, died during surgery. The injury to William Daniel, 21, is not life-threatening. Police said both of the ... (click for more)

Slaxxon Regret

Back in the seventies my three oldest brothers had a buddy named Steve Slack. “Slack” was a star soccer player at Baylor and he grew up on Lookout Mountain, which is where I grew up. He and Jimmy, Henry and Bill went to the University of Virginia where they were roommates in an old, beat up house that was painted pink. Naturally, the place became known as the “Pink Palace” but lest ... (click for more)

Roy Exum: The Scottsboro Boys

There is a good-sized train tunnel that runs under the northern tip of Lookout Mountain, right next to Cummings Highway. It was inside that tunnel on this very weekend 86 years ago, that the worst tragedy in the fabled history of the South was born. This was during the tight grip of the Depression and about two dozen hobos had jumped the train from the time it left Southern Railway's ... (click for more)