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Enterprise Zone audit reveals no major flaws

Santa Clarita first city audited under the state’s new format; state wants more documentation

Posted: April 4, 2013 2:00 a.m.
Updated: April 4, 2013 2:00 a.m.

Don Fleming, co-chairman of the SCVEDC, right, introduces the people who worked on getting the SCV Enterprise Zone approved at the Enterprise Zone celebration party held at Tournament Players Club last year.

 

An exhaustive five-day audit of Santa Clarita’s Enterprise Zone resulted in the program being given a green light with regards to running of the program and credits granted.

The only issue to be addressed revolves around “community partnerships,” said an official with the city.

Santa Clarita was the first city to be audited under the state’s new auditing format which involved 50 pages of questions. State auditors also spent a week in town to review the entire program in December 2012.

The program was last audited four or five years ago, but, only for one-half day, Jason Crawford, marketing and economic development manager with the city of Santa Clarita, said at the time of the audit.

Part of the new audit process included state auditors asking how community partnership contributions were documented. Contributions included promotional, marketing, and staff support, or cash donations from a number of organizations from throughout the Valley.

Some of that task would be very labor intensive when it comes to documenting 5 to 10 percent of staff time that was already donated by a number of local organizations, for the past two years, Crawford said.

“They gave us a couple of choices; to apply to revise our agreement and remove some of the contributions from the agreement, or to document every contribution,” he said.

Before responding, Crawford said the city wants to explore the best plan of action moving forward.

“The question is do we go back and revise the contract with the state to remove the partner contributions; and, if we do, are there any risks that might jeopardize the program,” Crawford said.

 

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