LANSING – The Michigan Strategic Fund did not report accurate data about the number of jobs created through the 21st Century Jobs Trust Fund programs to the Legislature, and failed to adequately monitor the progress companies assisted through the funds were making in meeting their employment goals, said an audit released Tuesday by Auditor General Thomas McTavish.

As a result, the audit said, the Strategic Fund overstated to the Legislature the number of jobs the firms had created. “As a result, the annual report data may have negatively impacted the Legislature’s ability to correctly evaluate program results,” the audit said.

In some cases, the differences in the jobs created between what was anticipated was quite striking, and the audit said the programs did not adequately assess the overall effectiveness and success of the firms who acquired funding through the programs. For example, one company had projected it could have as many as 600 employees, but it succeeded in only hiring seven workers.

Governor Rick Snyder, asked about the audit at a brief press conference, said he had not had a chance to review the audit, but, “we want to get our numbers right.” Snyder said the administration had always wanted to make sure the numbers it issued were accurate and that he would follow-up on the issue.

The MSF concurred with the findings of the audit.

Michigan Economic Development Corporation President Michael Finney, which oversees the MSF, said the corporation was taking steps to correct the problems found in the audit.

The 21st Century Jobs Fund was created during the administration of former Governor Jennifer Granholm. As part of creating the programs, the Legislature required numerous reporting functions.

But the audit said the practices used often resulted in reporting data that did not accurately portray the actual picture of the companies. The audit never suggested any fraud, but did say the MSF and the programs funds failed to verify many of the self-reported totals from the companies.

In addition, some practices of the funds did not allow for completely accurate reporting. For example, the audit said the fund required companies to report on the conditions on September 30, the end of the fiscal year. But the report to the Legislature was not released until the following April and there was no follow-up with the companies.

Because of the reporting and verification issue, the fund told the Legislature in one specific fund, the C of Energy Excellence Fund that 75 percent of the recipients had met their job creation targets when in fact just 19 percent had done so.

The audit also found that the MSF had failed to report all tourism promotion data to the Legislature, though the fund itself said that was an oversight.

And in its response, the MSF said it would take steps to ensure all relevant data regarding companies is reported by double-checking with the firms if there is significant time difference between the time the company reports and the MSF reports to the Legislature. It also said it would develop methods to check for the accuracy of the data provided, and to make sure there is no missing data.

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