Audit of Economic Development Incentive Fund Program, April 2019

8 |  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 Excluding the job created and terminated on the same day, the 11 new jobs averaged a starting  wage of $41,266.73, which failed to meet the required minimum Grant Allocation Wage of  $43,304. However, the County determined the company was eligible for incentive funding by  removing the three lowest jobs from the Grant Allocation Wage calculation. By doing so, the  Grant Allocation Wage increased to exceed the minimum of $43,304.  The County determined that six new full time positions were eligible for incentive funds and the  agreement allotted $3,000 for each full‐time job created, totaling $18,000. The agreement  indicated that the total incentive funds were to be paid in four equal parts, which totaled  $4,500 per year. The County has paid three of the four equal payments related to the first Job  Creation Period, for a grand total of $13,500.  Recommendation The County should review the grant agreement, all submitted job affidavits, and supporting  documentation to determine if the County is entitled to a reimbursement related to this grant  agreement.  To ensure compliance with future incentive agreement requirements, all full time employees  hired in a single year of the Job Creation Period, should be included and the average salary  should be calculated. If the average salary does not meet or exceed the Grant Allocation Wage,  then the Company should not be provided incentive funding due to lack of performance.  Management Response  Governmental Relations staff will review the specified grant agreement and documentation  with the Office of the County Attorney and County Administration. For future grant  agreements, staff will include all full‐time employees hired in a single year of the Job Creation  Period in the calculation of the average salary to determine whether the Grant Allocation Wage  has been met for that year. This guideline has been specifically identified within the  Governmental Relations Office Procedures and Guidelines for EDIF Application and  Performance Review.