Published on : Tuesday, October 31, 2017
Recently, a two-year audit came to a conclusion that the management of a Colorado program intended to pay for tourism projects has failed utterly in order to set up proper controls and adequately monitor projects.
On Monday, the state auditor’s office expressed their annoyance on the officials managing the Regional Tourism Act, as reported by the Denver Post. Approved in the year 2009, the act provides tax-increment financing to assist large-scale tourism projects.
From the year 2012 to 2015, five of nine projects that were to be financed received approval and awarded and awarded over $445 million in state sales taxes to be paid throughout several decades. A total of roughly $11.3 million has been distributed so far.
On the other hand, the audit explained that three of those projects were permitted in spite of a third-party analysis that discovered the projects failed to meet standards. In addition, forecasts of all the five project applications incremental state sales tax revenue calculations which were greater than the third-party analysts’ calculations, the audit mentioned.
The audit stated that the officials of the state were not capable to display how the higher calculations were justified. On Monday, at the time of Colorado Legislative Audit Committee, state economic development officials explained that the program is exclusive and has improved since it started.