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Audit finds lack of verification in JDIG grants

The state Department of Commerce issued $20 million in job-creation grants in 2010 without performing audits or onsite visits to confirm that the companies met the requirements of the grants, according to a state audit released Monday.

The department instead relied on withholding records from the Department of Revenue to confirm the accuracy of the wage and tax information being reported by companies, while also requiring companies to submit and certify annual reports.

“Relying on a company that is receiving grant payments to confirm that the company is in compliance with the grant requirements does not meet the definition of an objective and independent process,” the auditor’s report concluded.

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