Audit of Economic Development Incentive Fund Program, April 2019

9 |  A u d i t o f E c o n o m i c D e v e l o p m e n t I n c e n t i v e F u n d P r o g r a m  A p r i l 2 0 1 9 2. Supporting Documentation for Payment Requests Observation  Per the Financial Incentive Grant Agreements reviewed, Section 6.1 states that "an authorized,  knowledgeable representative of the Company shall deliver to the County a completed UCT‐6  statement, a properly executed Job Creation/Retention Affidavit showing the number of New  Full Time Jobs created during the Job Creation Period and any New Full Time Jobs that have  been eliminated, and the annual starting salary of each eliminated position."  The auditor identified and reviewed five Financial Incentive Grant Agreements that were  entered into after January 1, 2014 and two agreements that exceeded $100,000 for the period  of January 1, 2012 through December 31, 2013. There were a total of 19 payments made  against the agreements, totaling $878,226.  The auditor identified five payment requests that failed to include Florida Employer's Quarterly  Reports (RT‐6 formerly UCT‐6), which is required to be submitted to support the job affidavit.  The companies instead provided the Federal quarterly payroll reports (Form 941). Although this  includes important payroll information, the employees listed in a Form 941 could be located  anywhere in the United States, whereas payroll information listed in RT‐6 forms, will include  payroll data only for employees working in Florida.  Additionally, one of the seven Financial Incentive Grant Agreements lacked sufficient  supporting documentation for the required semi‐annual job affidavits. The auditor noted that  the initial supporting documents included semi‐annual job affidavits; however, as time went on,  the job affidavits provided were not covering six month periods, and eventually the entity only  provided annual job affidavits.  Recommendation To improve the process for verifying the jobs listed on the submitted job affidavit were actually  created, the County should ensure documentation provided is complete and supports the job  affidavit prior to making a payment request.