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Audit Objective

Determine whether Sullivan County (County) Funding Corporation (Corporation) officials awarded funds from the Millennium revolving loan program (Program) in accordance with established policy guidelines (guidelines) and ensured businesses complied with loan agreements.

Key Findings

Corporation officials did not award all funds from the Program in accordance with established guidelines and did not ensure businesses complied with their agreements.

• The Loan Review Committee (Committee) approved two loans that exceeded Program loan allowances. One loan exceeded the allowance by $37,500 or 100 percent and the second by $15,710 or 76 percent.
• Officials did not verify businesses’ self-reported job creation and retention numbers and had no procedures for recapture if job creation and retention expectations were not met. Six businesses self-reported they did not meet job creation and retention goals by a total of 24 jobs and seven businesses self-reported they met or exceeded job creation and retention goals by a total of 40 jobs.

Key Recommendations

• Monitor businesses’ compliance with the Program guidelines and discontinue approving loans that exceed established Program limits.
• Establish written policies to address default enforcement mechanisms and oversight of job creation and retention goals.

Corporation officials disagreed with certain findings and recommendations in our report. Appendix C includes our comments on the issues raised in the Corporation’s response.