[read complete report – pdf]   [read complete 2021 report – pdf] 

Purpose of Review

The purpose of our review was to assess the Warren County Local Development Corporation’s (Corporation) progress, as of December 2024, in implementing our recommendations in the audit report Warren County Local Development Corporation – Revolving Loan Program (2021M-102), released in December 2021. 

The audit determined that Corporation officials did not provide adequate oversight of the revolving loan program. The audit included 10 recommendations to help officials monitor and improve the Corporation’s oversight of the revolving loan program, including monitoring the use of the loans and enforcing repayment of the loans in accordance with agreements.

Background

The Corporation is located in Warren County. The Corporation was established in 1986 by the Warren County (County) Board of Supervisors. The Corporation is governed by a seven-member Board of Directors (Board) who are appointed annually by the Chairperson of the County Board of Supervisors. The Board’s Chairman is elected annually by the Board from among its ranks. The Board contracts with the Warren County Economic Development Corporation (EDC) to provide the day-to-day management of the Corporation’s revolving loan program. The EDC is a 501(c)(3) organization and is managed by a President who is an employee of the EDC. For the purpose of managing the Corporation’s day to day operations, including the revolving loan program, the President functions as the Corporation’s chief executive officer.

Results of Review

It appears that the Corporation has made progress implementing some corrective action. The audit report included 10 numbered audit recommendations. However, recommendation number 3 consisted of four separate bulleted recommendations, resulting in a total of 13 separate audit recommendations in the report. Of the 13 audit recommendations, seven recommendations were fully implemented, one recommendation was not applicable during the period reviewed, one was partially implemented and four were not implemented.