Auditors have recommended that a Kansas agency improve its documentation process for justifying tax credit awards. The auditors pointed out deficiencies in the documentation provided by the Kansas Department of Commerce for the justification of tax credit awards.
The audit covered tax credit awards issued between 2014 and 2018, and found that the Commerce Department did not always provide adequate documentation to support its decisions. Auditors urged the agency to establish clearer guidelines for awarding tax credits and to better document the justification for these awards.
The audit also highlighted inconsistencies in the agency’s process for evaluating the economic benefits of tax credit programs. Auditors recommended that the agency implement a standardized scoring system to evaluate tax credit applications and ensure consistent decision-making.
The Commerce Department has agreed to implement the audit’s recommendations and has stated that it will work to improve its documentation process for tax credit awards. The agency has also committed to improving transparency and accountability in its decision-making process.
The audit findings raise concerns about the lack of transparency and accountability in the awarding of tax credits in Kansas. It is important for state agencies to have clear and documented justifications for their decisions in order to ensure that taxpayer money is being used effectively and efficiently.
Moving forward, it will be vital for the Commerce Department to take steps to improve its documentation process and establish clearer guidelines for awarding tax credits. By doing so, the agency can enhance transparency and accountability in its decision-making and ensure that tax credits are awarded in a fair and consistent manner.
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