Audit finds economic development funds not used as intended in Kansas

A new audit of a Kansas economic development fund reveals 18% of available dollars were used as intended, underscoring legislative failings and a lack of accountability for how the money is handled after it is dispersed.

The report by the Kansas Legislative Division of Post Audit shows lawmakers failed to follow state law in appropriating $42.3 million dollars from the Economic Development Initiatives Fund in fiscal year 2018. Legislators who were briefed on the report during a Wednesday hearing voiced concerns about whether state law should be revised or if the initiative should be abandoned.

Sen. Julia Lynn, a Republican from Olathe and chairwoman of the Senate Commerce Committee, said she was “appalled” by the findings in the report. She said the work of auditors provides an opportunity to re-focus economic development programs.

“They need to be restructured,” Lynn said. “Their purpose needs to be fully defined and measured. Maybe they don’t even need to exist.”

Read more: https://www.cjonline.com/news/20191002/audit-finds-economic-development-funds-not-used-as-intended-in-kansas
(Topeka Capital-Journal)