MADISON (AP) - Wisconsin's semi-private job creation agency lacked supporting documentation justifying spending on expenses and grants during the first two years of its existence, according to a report released Friday.
The Legislative Audit Bureau's report examined the Wisconsin Economic Development Corporation's finances over fiscal years 2011-12 and 2012-13. Auditors found the agency's spending on administrative expenses such as salary, marketing and travel grew from $11.2 million in the first year to $15.1 million in the second.
Auditors reviewed 223 non-payroll administrative expenditures and found instances where spending wasn't adequately documented to show what spending occurred, whether it was reasonable or whether it was approved. Some expenditures should have been recorded in different accounts or weren't recorded consistently with similar types of spending. For example, $50,000 spent under a grant agreement was recorded as a services expenditure, the report said.
Spending on grants to businesses, economic development organizations and local governments grew from $14.7 million to $15.2 million during the time period, the report said. Auditors reviewed 44 grant expenditures and discovered errors in processing and that some supporting documentation wasn't adequate. For instance, documentation for two grant expenditures didn't include disbursement requests WEDC had approved.
The report noted the agency has corrected the processing errors and set up a new tracking system that will allow transactions to be uploaded directly into the agency's accounting system, reducing the chance for mistakes.
Gov. Scott Walker created WEDC, a public-private partnership, to replace the state Commerce Department in 2011. The agency was beset with problems from the start, including not tracking past-due loans, leadership turnover and highly critical audits.
The Legislative Audit Bureau's report examined the Wisconsin Economic Development Corporation's finances over fiscal years 2011-12 and 2012-13. Auditors found the agency's spending on administrative expenses such as salary, marketing and travel grew from $11.2 million in the first year to $15.1 million in the second.
Auditors reviewed 223 non-payroll administrative expenditures and found instances where spending wasn't adequately documented to show what spending occurred, whether it was reasonable or whether it was approved. Some expenditures should have been recorded in different accounts or weren't recorded consistently with similar types of spending. For example, $50,000 spent under a grant agreement was recorded as a services expenditure, the report said.
Spending on grants to businesses, economic development organizations and local governments grew from $14.7 million to $15.2 million during the time period, the report said. Auditors reviewed 44 grant expenditures and discovered errors in processing and that some supporting documentation wasn't adequate. For instance, documentation for two grant expenditures didn't include disbursement requests WEDC had approved.
The report noted the agency has corrected the processing errors and set up a new tracking system that will allow transactions to be uploaded directly into the agency's accounting system, reducing the chance for mistakes.
Gov. Scott Walker created WEDC, a public-private partnership, to replace the state Commerce Department in 2011. The agency was beset with problems from the start, including not tracking past-due loans, leadership turnover and highly critical audits.