NFC Development Corporation – Project Approval and Monitoring (2021M-11)

Issued Date
May 28, 2021

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Audit Objective

Determine whether NFC Development Corporation (Corporation) officials awarded projects in accordance with established guidelines and ensured businesses’ compliance with agreements.

Key Findings

Corporation officials awarded projects in accordance with established guidelines, but once funds were disbursed, officials generally did not follow up with businesses to ensure they complied with their agreements.

We examined 19 project agreements and found:

  • Officials did not verify or confirm the 18 businesses that agreed to create or retain a total of 96 positions actually did so.
  • Three of the eight loans reviewed had delinquent payments totaling $39,000.

In addition, the Board did not receive project status reports and it did not meet as required.

Key Recommendations

  • Develop written policies and procedures outlining the actions to be taken when loans are delinquent and other terms of the agreements are not met.
  • Establish written procedures to monitor businesses to ensure they are creating and retaining jobs in compliance with the terms of the agreements.

Corporation officials generally agreed with our recommendations and indicated they are taking corrective action.