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

 


UT & TSU Extension – Hamilton County Offers Workshops And Seminars

The  UT & TSU Extension – Hamilton County office in Chattanooga will offer several workshops and seminars: Farm to School Food Safety Workshop presented by UT Extension - Hamilton County will be held Dec. 10, at Orchard Knob Elementary, 2000 East 3 rd St., Chattanooga, Tn. 37404. The workshop will cover Meet and Greet, Tour School Facilities, Food Safety for Growers, ... (click for more)

Local Vapor Store Expands; Creates Premium Chattanooga-Inspired EJuices

After opening on June 12, the locally-owned Chattanooga Vapor Company has continued to thrive at its North Shore locations off of Frazier Avenue and in Soddy Daisy, at the corner of Dayton and Thrasher Pike. No matter where one falls within the company’s three-step process, they ensure each individual’s needs are met. Its focus on helping people quit smoking and using tobaccos is ... (click for more)

County Schools Have Plan To Put Security Cameras At Every School

The Hamilton County Schools have a plan to put security cameras in every school, Supt. Rick Smith told the County School Board Thursday night. He said the money would come from the $2,201,000 the schools received last year from the sale of the old Ooltewah Elementary School property. The proposal must get approval from the School Board at the December meeting, then from the ... (click for more)

Lookout Mountain, Ga., Raises Sewer Rates; Joins In Kudzu Fight

The Lookout Mountain, Ga., City Council on Thursday night approved an increase in sewer charges. The council approved ordinance 281 increasing sewer rates to $6 per 100 cubic feet of water from the previous rate of $4.77.  The new increase will be in effect in January 2015.    City Manager Brad Haven said the town will be replacing the flow meter for ... (click for more)

Don't Allow Us To Be Overrun By People Who Do Not Belong Here

Thank you, Senator Corker, for your clear, concise evaluation of the president's attempt to bypass Congress and personally and independently establish national policy that violates our current immigration laws.   Our long-standing failure to enforce our laws to control illegal immigration across our southern border has made this country less safe and ... (click for more)

Roy Exum: Quick! Arm Our Guards

When I learned last Wednesday that Chattanooga’s leading hospital, in a ridiculous attempt to be more “family friendly,” planned to disarm its security guards. I was aghast but decided to wait for the proper “incident” to illustrate how stupid members of our “free thought society” can sometimes be. It took exactly one week. A bit after midnight on Thursday morning a gunman appeared ... (click for more)