Determine whether the Finger Lakes Horizon Economic Development Corporation (Corporation) Board properly managed and monitored the revolving loan fund program.
The Board did not properly manage and monitor the revolving loan fund program. As a result, the Board cannot ensure the loan proceeds were used to further the Corporation’s mission.
- Revolving loan fund activity was not adequately monitored to ensure loan recipients’ performance goals were achieved. Officials requested follow-up information from loan recipients to verify job creation/retention goals but did not enforce these goals if not achieved.
- No practices were in place to ensure penalties were assessed when warranted.
- No formal written policies and procedures were in place for officials to monitor whether loan disbursements were used for their intended purposes.
- Clear, written guidance was not developed for loan project eligibility, how loan applications should be reviewed or approved, confirming loan funds were used for approved purposes and goals, or how collections should be enforced.
- Develop and adopt written policies and procedures governing the process for managing and monitoring the revolving loan fund program.
Except as specified in Appendix A, officials generally agreed with our recommendations and indicated they would take corrective action. Appendix B includes our comment on an issue raised in the Corporation’s response.