Independent Audit Highlights SLDC’s Successes & Improvements on North City Grant Process

An independent audit initiated by the St. Louis Development Corporation (SLDC) showed the North City Grant Program application process is largely fair, consistent and meets all federal guidelines and local requirements. The firm included recommendations for further clarity and transparency.

SLDC contracted Armanino Advisory LLC to perform a preliminary assessment of the North St. Louis Small Business & Non-Profit Program.

The assessment reviewed how SLDC selected businesses for the North St. Louis Small Business & Non-Profit Program, which includes communications, eligibility criteria, scoring methodologies, and recommendations.

KEY RECOMMENDATIONS:

• Prepare application flow diagram for Transparency Portal

• Create advisory committee

• Consider letters from aldermen supporting or opposing funding projects in respective wards

• Require forms acknowledging any potential conflicts of interest by aldermen and advisory committee members

• Add age of business to application scoring metric based on public feedback

NEXT STEPS:

• Resume the release of funds for non-competitive grants on Friday, November 22, 2024 for all businesses that have been fully vetted and have received CBI clearance

• Present Operational Expansion and Community Enhancement programs, approve funding, and acknowledge rescissions to SLDC Board of Directors

• Resume the release of funds for Operational Expansion and Community Enhancement programs following approval from SLDC Board of Directors

On Thursday, SLDC’s Board of Directors approved the audit. The cost is not to exceed $50,000 over the course of six months. Interest earned from American Rescue Plan Act funding will pay for the audit. Armanino Advisory LLC will monitor the program throughout the process and provide a final report at the end of its six-month contract.