The Golden LEAF Foundation has failed to effectively oversee the more than $300 million in economic development grants it has made since it was formed a decade ago, according to the state auditor's office.
Although Golden Leaf does monitor its grant recipients, the nonprofit foundation doesn't do enough to verify the data it receives from grantees or to review their financial condition, asserts the performance audit released today by the office of State Auditor Beth Wood.
"Consequently, state funds could be wasted on grantees that are not achieving desired results or lack the capacity to sustain operations," the audit concludes.
The audit, which also criticizes the foundation's compliance with the state's open meeting laws and questions its exemption from laws that apply to state funds, recommends that the nonprofit beef up its policies for monitoring and reporting its economic development activities.
Dan Gerlach, who joined Golden Leaf as its president in October 2008, disputes the criticism of the foundation's oversight of grant recipients.
"I think we have strong grant oversight," Gerlach said. "I think our grantees are amazed at how much oversight there is."
