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

 



New Hamilton County Businesses

Here are the new businesses from the County Clerk's office: A2Z CANVASS NITA  SLATTON 2 RETAIL SALES AND SERVICE OF CANOPY'S 2001 WHEELER AVE CHATTANOOGA TN 37406 BAREFOOT GYPSY BARBARA  RODRIGUEZ 3 CRAFTS, GIFT SALES ONLINE 3600 LEE PIKE SODDY DAISY TN 37377 BAXTER HOME INSPECTIONS CHARLES H BAXTER, III 3 HOME INSPECTIONS ... (click for more)

Templeton And Cothern Become Members At Patrick, Beard, Schulman & Jacoway, P.C.

Patrick, Beard, Schulman & Jacoway, P.C. announces that John H. Templeton and Jeremy M. Cothern have been elected to firm membership. The 15-attorney, full service law firm offers business formation, governance, and transactions, estate planning, probate, and civil and criminal litigation for businesses, utilities, government entities, and individuals.  Mr. Templeton ... (click for more)

Home In Alton Park Damaged By Fire Friday Morning

No injuries were reported in connection with a house fire in Alton Park Friday morning. The Chattanooga Fire Department received the alarm around  8:30 a.m.  and responded to 4020 Highland Ave. with five fire companies. When the first firefighters arrived on the scene, one of the residents of the house was concerned this his wife might still be inside. The firefighters ... (click for more)

Pedestrian Struck And Severely Injured In East Ridge Thursday Night

The East Ridge Police Department is investigating a motor vehicle collision involving a pedestrian being struck  at 5300 Ringgold Road on Thursday around  10 p.m. Officers arrived and found that East Ridge resident Dale Henderson had been struck by a vehicle and was suffering from severe injuries. It appears he attempted to cross Ringgold Road in front ... (click for more)

Technology: The Virtual Drug

The truth is you're probably reading this on a mobile device or your computer. As a matter of fact, I’m typing this down on a MacBook Pro. The point is technology is everywhere. It engulfs like a tsunami engulfs a village, only a few ever escape. In fact, it took me two hours to start this paper because I was so hypnotized by phone, checking my Instagram and seeing what the next ... (click for more)

Roy Exum: The Saturday Funnies

This week, as two men greeted one another at the steps leading to a holiday party, one said, “My wife is angel,” this in keeping with the season. The other replied, “You’re lucky … mine is still alive.” Once inside, the two walked into this conversation – “We had a power outage at our house this morning. So, my PC, laptop, TV, DVD, iPad and new surround sound music system were ... (click for more)