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

 



Public Works Employees Celebrated With Breakfast Hosted By Mayor Rowland And Other City Officials

In celebration of National Public Works Week, Mayor Tom Rowland, Councilman David May, City Manager Joe Fivas and Assistant City Manager Melinda Carroll recognized the "extraordinary endeavors" of the Public Works Department by hosting a breakfast for public works employees.  “This week we commend the men and women we rely on every day to celebrate their important contributions ... (click for more)

East Tennessee Purchasing Association Hosts 13th Annual Business Matching And Tradeshow Event

Small and midsized businesses interested in working with local governments can meet with about 20 municipalities plus many tradeshow vendors in one stop at the East Tennessee Purchasing Association’s 13th Annual Business Matching and Tradeshow event on Wednesday, June 6. The event will be held in Chattanooga at Stratton Hall, 3146 Broad St., from 9 a.m.-noon. Attendees will ... (click for more)

State Seeking 1st-Degree Murder Conviction Against Donaldson For Killing Son-In-Law

The state is seeking a first-degree murder conviction against 57-year-old Glen Allen Donaldson for killed his son-in-law. Prosecutor Crystle Carrion told a jury in the courtroom of Judge Don Poole on Tuesday that there was no evidence that self-defense was involved in the slaying of Adam Levi, who was 39. However,attorney Jerry Summers said Donaldson said in a 911 call that ... (click for more)

City Budget Uses $36 Million From Various Reserve Funds

Daisy Madison, the city's chief financial officer, said the upcoming city budget uses $36 million from various reserve funds, including $11 million from the city's rainy day fund. The budget last year pulled $10 million from the rainy day fund. Ms. Madison told City Council members at a budget hearing she did not know exactly how much is remaining in the rainy day fund without ... (click for more)

Liberal Conspiracy Afoot

According to Roy Exum’s Sunday column, there are now upwards of six or seven Democrats in Hamilton County, and all of them have secretly maneuvered their way onto the boards of a couple of dozen local organizations. Unlike Republicans, some of them serve on multiple boards and some of them serve with one another on the same boards. This is outrageous. We all know that boards and ... (click for more)

Roy Exum: Please Don’t Get Numb

Several weeks ago we woke up to learn there had been another shooting in Chattanooga and the next day there were two paragraphs on the fourth page of the newspaper.  It has become so common we as a society have grown numb to it and, when a teen-aged girl in Texas said she wasn’t surprised last week when eight students and two teachers were massacred in her school some 30 miles ... (click for more)