FOR IMMEDIATE RELEASE

May 25, 2006

David Hamill, 302.672.6824

Dover - 

Speed is an attribute that is valued highly at the Delaware Economic Development Office. After all, DEDO's speed and agility has enabled us to achieve some incredible impact for Delawareans in the way of jobs and opportunity. While DEDO does need to go fast when it comes to keeping the state economy competitive, there are times when less speed is needed. Recently the State Auditor brought this point home to DEDO with respect to our handling of state bidding procedures, which demand care and attention.

The State Auditor's Office rightly concluded that DEDO needs to improve internal procedures relating to bidding and contracting. As DEDO Director I have embraced the conclusions and recommendations of the State Auditor and am working to implement them. I believe these changes will make DEDO a stronger, more effective organization.

The main findings and recommendations of the State Auditor were that DEDO needed to ensure that bid files were established and maintained and that DEDO needed to develop policies and procedures to ensure compliance with state procurement regulations. Our shortcomings in these areas gave rise to problems such as inadequate supporting documentation, fragmentation of contracts and an uncertain audit trail on four contracts.

While the State Auditor's report has been sensationalized by some, I think it wiser to consider the business model. The audit function is good because it gives us clear direction on the why's and how's of good policy. It gives organizations the opportunity to improve in a structured way using best practices. And in DEDO's case, we have the opportunity to correct practices that have been in effect since the 1980's.

The good news is that The State Auditor's Office concurs that DEDO has taken or is taking the necessary corrective actions to get back on the high ground. Among the things we are doing are these: The establishment of dedicated contract files that contain bid information, history and vendor contract information and the updating of policy and procedures to include relevant state procurement regulations. In addition, several DEDO administrative staff have already completed the state provided budget and accounting courses that included specific sections on the procurement process including the legal underpinnings.

Since assuming the Director's job at DEDO in 2002, I have set an aggressive course predicated on speed, results-oriented sales, jobs impacted and new business and growth opportunities. The most recent data submitted to Governor Minner and to members of the legislature shows that Delaware realized big dividends in fiscal year 2005 that included 8,000 jobs impacted and a 63:1 return on investment ratio on state dollars invested in economic development projects.

Going forward I remain committed to speed on the external side of the DEDO business plan. This is essential to Delaware's ability to compete and win among bigger, stronger state and national governments. But I am committed to the best internal administration, too. That does not always mean speed; it does always mean care and attention.

As DEDO Director I welcome the opportunity to correct mistakes and adopt best practices. This can only strengthen operations. In that regard, I am grateful to the State Auditor's Office for their good work and remain committed to fully implementing their recommendations in the coming fiscal year.

Sincerely,
Judy McKinney-Cherry
Director
JMC