U.S. Dept of Commerce questions county’s revolving loan fund

By Wayne Allen

April 23, 2014

By Wayne Allen


In a letter dated April 21, the U.S. Department of Commerce is calling into question some apparent discrepancies in Scioto County’s Revolving Loan Fund (RLF).

According to the letter, from Jeannette P. Tamayo, U.S. Department of Commerce Economic Development Administration, it states, “We (U.S. Department of Commerce) have noted a significant discrepancy in the value of the RLF.”

Tamayo stated the discrepancies were discovered in reports the county filed accounting for the funds.

In response to the letter, Heather Cunningham, Scioto County Chief Deputy Auditor, wrote a repsonse letter on April 22, “on behalf of Scioto County, I am responding to questions raised regarding a discrepancy in the amount reported for CFDA (Catalog of Federal Domestic Assistance) 11.307.” Cunningham wrote, the auditor’s office is not responsible for the fund but relies on the Revolving Loan Fund Manager to provide information on the outstanding balance of EDA loans at year-end.

“Ms. Kendra Hobson, former Revolving Loan Fund Manager for Scioto County, provided this office with a listing showing $398,459.65 as the total outstanding balance for all EDA loans as of 12/31/2012. Consequently, this is the figure that was used when calculating the Expenditures of Federal Awards for calendar year 2012,” Cunningham wrote. “It appears the $398,459.65 figure provided to this office included the balance of two EDA loans totaling $309,339.74 that have now apparently been written off. The inclusion of these two EDA loans in our calculation explains the apparent discrepancy for which you have requested clarification.”

In July of 2013 the commissioners received a letter from the U.S. Department of Commerce stating the county needs to repay $15,000 in funds that were not spent properly.

Wayne Allen can be reached at 740-353-3101, ext. 228 or on Twitter @WayneallenPDT