WEDC discovers delay in mailing past-due reminders

By Katherine Michalets - Freeman Staff

March 9, 2015

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 January.

“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 entity.

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.

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