EDCUtah's Response to the Legislative Audit

To Whom It May Concern:

In the fall of 2015, EDCUtah learned that its tax-exempt designation with the IRS had been suspended. This suspension came after failing to file the appropriate annual paperwork with the IRS (Form 990) for three consecutive years, dating back to FY 2010-11. EDCUtah recognizes the errors that were made, and regrets this situation. We have apologized to all of our investors, staff and supporters.

A series of internal failures that led to these problems have since been identified, and significant structural and process changes have been made to ensure they never occur again. An independent financial audit done in the spring of 2016 for FY 2013-14 and FY 2014-15 uncovered a lack of financial controls and oversight. An audit of EDCUtah’s governance, management and overall operation was also undertaken by the Utah Office of the Legislative Auditor General in late 2015, and that hearing will take place today.

In today’s hearing, EDCUtah will report on the numerous internal changes that have been made to correct the problems that led to this situation, including the hiring of staff with greater experience in non-profit financial management, the creation of stronger financial oversight and governance by the Board of Trustees, and the adoption of policies and procedures to prevent any reoccurrence and allow for greater control.

Regards,

Jeff Edwards
President & CEO

 

 Corrective Actions

 Fact Sheet

Publication 
Tue, 10/18/2016 - 05:00