Posted at: 12/17/2012 3:44 PM
MADISON, Wis. (AP) - An independent audit says high staff turnover, poor record keeping and a lack of basic accounting controls all contributed to problems in the first year of Wisconsin's premiere job-creation agency.
The draft audit released Monday looked at the first year of operations of the semi-private Wisconsin Economic Development Corp.
The agency has been beset with a series of problems, including not properly tracking $56 million in loans to businesses. Borrowers have fallen behind on payments on loans now worth more than $12 million.
The audit by Schneck SC says basic internal accounting controls over the loans were not in place. It also says loan agreements did not always contain approved staff or performance reviews.
WEDC officials says steps are being taken to improve operations.
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