The Authority needs to enhance its financial planning of loan programs to assure monies are available for future economic development. During 1997, the Authority initiated new loan programs designed to maximize improvement of economic development. The Authority has eight funds for providing development monies.
Cash flows out of the funds as loans are made, and in as the loans are repaid.
The Authority has not developed a financial plan to set forth the funding limitations and the implementation schedule for integrating new programs into existing and future cash flows. Accordingly, without such a plan, the risk exists that the Authority may over commit itself to particular programs, and restrict too many assets in programs that may provide reduced future earnings. We recommended the Authority develop a financial plan to guide its future activities in implementing its new development programs. The Authority accepted the recommendation and responded that it has started implementing an Asset Management Plan that will include formal investment policies and procedures for managing assets by funds to provide future financial service development. The response was provided by the Authority's Executive Director, Mr. Bobby J. Wilkerson.