A new state audit shows Wisconsin’s job creation agency did not keep records to justify its spending on travel, salaries, and grants during its first two years.
The report from the Legislative Audit Bureau contains a fiscal review of the Wisconsin Economic Development Corporation, the public-private agency Governor Scott Walker created in 2011. Auditors said previously identified processing errors within the agency have been fixed, and there’s a new tracking system in which expense numbers upload directly into the agency’s accounting network. That reduces the chances for errors.
The audit showed that spending on 223 administrative items were not properly documented to indicate whether the items were reasonable, or even approved. The auditors also looked at 44 grant payments to businesses, economic groups, and local governments. They turned up processing errors, and a lack of supporting documents. The review covered 2011-2013 and noted that $1.7 million in job creation loans to businesses had not been paid back by the end of last year.
Agency CEO Reed Hall said his department now has a policy on documenting spending, and it plans to review its loan portfolio.