Cheektowaga Economic Development Corporation (CEDC) – Revolving Loan Program (2021M-85)

Issued Date
November 05, 2021

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Audit Objective

Determine whether the Cheektowaga Economic Development Corporation (CEDC) Board properly managed and monitored the revolving loan fund program.

Key Findings

The CEDC Board did not properly manage or monitor the revolving loan fund program and was unaware inadequate accounting records were maintained.

  • In 2019, CEDC wrote off two loans with balances totaling approximately $563,000 because the loans were not properly secured and the recipients had insufficient assets to satisfy the outstanding balances.
  • Accounting records were not complete, accurate or up to date.
  • Loan repayments were not properly accounted for or deposited in a timely manner.
  • Late fees were not always properly assessed and collected.
  • Program performance goals were not properly monitored or always achieved.

Key Recommendations

  • Maintain complete, accurate and up-to-date accounting records.
  • Ensure loan repayments are properly accounted for, received and deposited in a timely manner and late fees are properly assessed and collected.
  • Monitor active loans at least quarterly to ensure they are meeting job goals.

CEDC officials generally agreed with our findings and recommendations and indicated they planned to initiate corrective action.