The Wisconsin Economic Development Corporation drew criticism from state officials Wednesday after a Legislative Audit Bureau audit of the organization found WEDC operated with a number of financial and organizational inefficiencies during the 2011-’12 fiscal year.
The WEDC aims to help the state’s economy by supplying financial and technical services, among others, that support business growth in the state. However, the LAB audit found the organization is not fulfilling its mission and is in violation of state statues mandating the organization monitor its spending initiatives.
Additionally, the audit found the WEDC lacked clear documentation on how it allocated its taxpayer funding and did not establish clear goals for 10 of its 30 programs it ran in the 2011-’12 fiscal year.
State legislators from both sides of the aisle, including state Sen. Rob Cowles, R-Green Bay, who co-chairs the state’s Joint Audit Committee, criticized the WEDC for its lack of structure and poor working record.
“This audit shows there is a significant disconnect between [legislators’] expectations of WEDC and the reality of [its] performance with regard to transparency and accountability,” Cowles said in a statement. “WEDC needs to take this audit seriously and correct these deficiencies immediately.”
Reed Hall, CEO of WEDC, sent a letter to LAB defending the organization and saying WEDC had already started addressing the issues the audit outlined earlier this year.
“When the magnitude of these challenges became apparent … WEDC leadership immediately and diligently began implementing process and organizational improvements,” Hall said in the letter. “Much of the focus has been on improving internal processes, financial accounting and management practices.”
