MADISON — During an internal
review, the Wisconsin Economic Development Corporation
discovered that there had been a delay in mailing
past-due reminders to companies regarding expenditures,
but management was not made aware of the delay until
“This delay was uncovered as part of WEDC’s internal
monitoring procedure, which is in place to proactively
uncover such problems and enables staff to quickly
respond. In this case, WEDC’s internal process worked
just as intended. At no time was there a delay in
sending out warning letters or past-due notices for loan
payments, and this delay did not affect the repayment of
loans,” said Mark Maley, public information manager for
WEDC, in a statement.
According to the WEDC, companies receiving loans or
grants of $100,000 or more are required to complete and
submit a schedule of expenditures statement, which is a
part of the verification process for the public-private
In December, WEDC staff learned that there had been a
delay in sending out past-due notices and reminder
letters for the schedules of expenditures.
“Preliminary results were presented to WEDC management
in late January, which followed an expedited process for
our internal monitoring. A meeting was immediately
scheduled with responsible management. Staff was
instructed that this was an absolute priority over other
projects and the letters needed to be sent to award
recipients as soon as possible,” according to
information from the WEDC.
Past-due notices were sent to companies on Feb. 13. An
independent CPA is required to do the verification. WEDC
sent a memo outlining the situation to the WEDC Board on
Feb. 24. The memo and an update on WEDC’s internal
monitoring will be discussed with the Audit Committee on
March 10 and the full board at the April meeting.
WEDC is a public-private entity that was created in 2011
by state statute, 2011 Wisconsin Act 7, during a special
session focused on job creation called by Gov. Scott
Walker and the Legislature.