Audit Recommends MOITI Improve Administrative Practices

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BOSTON — The Office of State Auditor Suzanne M. Bump released an audit of the Massachusetts Office of International Trade and Investment (MOITI), which found that MOITI's process for collecting and recording information about small businesses in underserved small business communities (USBCs) applying to the State Trade Expansion Program (STEP) is ineffective. 
 
Additionally, the audit found that MOITI has not implemented requirements for graduating small businesses from STEP.  
 
"Our audit found that MOITI does not effectively collect information on whether small businesses applying for STEP financial assistance awards are part of the four federal Small Business Administration (SBA)–defined USBCs. Instead of collecting this information from all applicants, MOITI only attempts to collect this information from the small businesses that have been awarded funds. As a result, MOITI cannot properly measure their impact in supporting underserved small businesses," said State Auditor Suzanne M. Bump. "After the COVID-19 pandemic, now more than ever small businesses within underserved communities need support. I am pleased to see MOITI is taking steps to address this issue raised in our audit."
 
Additionally, the audit found that MOITI does not collect complete information about all four of the USBCs. It allows businesses to indicate that they are owned and controlled by women, but not whether they are part of any of the other three USBCs. Further, auditors noted that MOITI does not ensure that when it does collect this information, it is accurately recorded on reports sent to the SBA.
 
The audit also identified that MOITI had not implemented requirements for graduating small businesses from STEP. There have been 169 small businesses that have received financial assistance awards from MOITI since STEP's inception. The audit found that 41 (24 percent) of these small businesses had received awards for three or more years. Eight of these small businesses received awards in all six of the years the auditors reviewed; five businesses received awards in five of the years; six received awards in four of the years; and twenty-two received awards in three of the years. The total amount of funding given to each of these small businesses ranged from $18,473 to $62,500.
 
To improve these processes, the audit recommends MOITI ensure its employees are aware of STEP requirements and review the current information it has for businesses that have received STEP financial assistance awards and rectify any inaccuracies.  In addition, MOITI should revise its Massachusetts STEP Program Readiness Assessment and Application to include the SBA's definitions of the four USBCs and an area where a small business should document any of the four USBCs to which it belongs. Further, MOITI should implement monitoring controls to ensure that it accurately records applicant's reported USBC statuses on reports sent to the SBA. The audit also advises MOITI to implement requirements for graduating small businesses from STEP.
 
MOITI, established by Section 13K of Chapter 23A of the Massachusetts General Laws, is an agency overseen by the Executive Office of Housing and Economic Development (EOHED) and is part of EOHED's Massachusetts Marketing Partnership. MOITI is administered by an executive director, who is appointed by the Governor.
 
STEP was initially established by the Small Business Jobs Act of 2010 as a three-year pilot program. It was later established as a permanent, federally administered program under the Trade Enforcement Act of 2015. STEP's purpose is to increase the number of small businesses that export and to increase the value of exports from those businesses. Through STEP, SBA provides grants to state government organizations (such as MOITI), which then give financial assistance awards to small businesses.
 
The audit can be viewed here.

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PEDA Site 9 Preparation, Member Retirement

By Breanna SteeleiBerkshires Staff

PITTSFIELD, Mass. — The redevelopment of Site 9 for mixed-use in the William Stanley Business Park is set to take off. 

Edward Weagle, principal geologist at Roux Associates, gave an update on the yearlong work to the Pittsfield Economic Development Authority last week.

"It's been a real pleasure for me to work on a project like this," he said. "This is kind of like a project of a career of a lifetime for me, and I'm very pleased to see that we're just at the finish line right now. My understanding is that all the documents are in front of the commissioner, waiting for her to sign off."

Mill Town Capital is planning to develop a mixed-use building that includes housing on the site. Roux, headquartered in Islandia, N.Y., was hired assist with obtaining grant financing, regulatory permitting, and regulatory approvals to aid in preparing the 16.5-acre site for redevelopment. Approximately 25,000 cubic yards of concrete slabs, foundations, and pavements were removed from the former GE site. 

Once the documents are signed off, PEDA can begin the work of transferring 4.7 acres to Mill Town. Weagle said the closing on this project will make it easier to work on the other parcels and that he's looking forward to working on Sites 7 and 8.

PEDA received a $500,000 Site Readiness Program grant last year from MassDevelopment for Sites 7 and Site 8. The approximately 3-acre sites are across Woodlawn Avenue from Site 9 and border Kellogg Street. 

In other news, the state Department of Transportation has rented the east side of the parking lot for CDL (Commercial Driver's License) training. This is an annual lease that began in September and will bring in $37,200 in revenue.

Lastly, the meeting concluded with congratulations to Maurice "Mick" Callahan Jr. on his retirement.

Callahan is a former chair and a founding member of PEDA, dating back to when the board was established in the 1990s. He has also served on a number of civic and community boards and has volunteered for many organizations in the Berkshires. He is the president of M. Callahan Inc. 

"The one thing that's been a common denominator back is that you've always put others before yourself. You've served others well. You've been a mentor to two generations of Denmarks, and I'm sure many generations of other families and people within this city," said board Chair Jonathan Denmark. "We can never say thank you enough, but thank you for your services, for the creation of this board, your service to the city of Pittsfield, and to all the communities that you've represented and enjoy retirement." 

"It wasn't always easy to be in the position that you were in Mick, but you handled it with so much grace, always respecting this community, bringing pride to our community," member Linda Clairmont said. "I could not have accomplished many of the things I did, especially here for this business part, without you all of the Economic Development discussions that we had really informed my thinking, and I'm so grateful."

Callahan left the team with a message as this was his final meeting, but said he is always reachable if needed.

"I also have to say that a lot of great people sat around this table and other tables before the current board, and the time that I had with Pam [Green] and Mike [Filpi] sticking around, the leadership of this mayor [board member Linda Tyer], and it really, it was always great synergy," he said.

"So don't be afraid to embrace change. And you know, you got a business model. It's been around long time. Shake it up. Take a good look at it, figure out where it needs to go, and you're lucky to have leadership that you have here."

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