Department of Community and Economic Development (DCED) Secretary C. Alan Walker today issued the following statement in response to the release of the Auditor General’s Special Performance Audit which evaluated funding awarded to businesses from five DCED programs from a prior administration, between 2007 and 2010.
The five DCED programs included in the review were the: Customized Job Training (CJT); Opportunity Grant Program (OGP); Infrastructure Development Program (IDP); PA Industrial Development Authority (PIDA); and Small Business First (SBF). In 2011, the Corbett administration consolidated the CJT, OGP and IDP programs into the Pennsylvania First program. Additionally, the SBF program will be consolidated under PIDA per Act 161 of 2014.
“The Auditor General’s report, which evaluates grants awarded prior to the Corbett administration, provides constructive recommendations; however, the report also contains a number of generalized statements rather than facts consistent with a typical audit.
“The audit asserts that only 56 percent of businesses awarded assistance met projections when in fact our monitoring and compliance office provided data showing that businesses actually created or retained 133,329 jobs of the 137,749 pledged to be created or retained. These figures establish that the programs in question resulted in businesses meeting 96.7 percent of projections during a time period considered by many to be the second largest economic downturn in United States history.
“DCED will continue strengthening its efforts to support private sector job growth and ensuring transparency and accountability in the expenditure of public funds.”
A complete copy of DCED’s comprehensive response to the Auditor General’s Special Performance Audit can be found at www.newPA.com/auditresponse