The Connecticut Social Equity Council (SEC) utilized “questionable business practices and procedures that were troubling, subjective and ambiguous,” according to a recent Office of the State Comptroller audit that was requested by Gov. Ned Lamont (D) earlier this year.
While the audit did not show the SEC had broken state laws, state Comptroller Sean Scanlon recommended that the governor’s “pause” on funding distributed by the Council be extended until the concerns are properly addressed, the News-Times reported.
The SEC last year approved $6 million for six different nonprofits offering equity grants and processed non-payroll expenditures exceeding $2.5 million, but more than $33 million in funding for the agency remains.
The four-month investigation highlighted concerns about a lack of communication from the Council, unclear or contradicting guidance from Council staff, and criteria for the social equity plan being updated without sufficient notice. The report also investigated licensing delays and the lack of transparency in the evaluation process, which resulted in additional costs for applicants.
The audit details six recommendations for revising state law to address the concerns:
Eliminate subjectivity in the law and establish criteria for evaluating social equity applicants. This would include eliminating donation considerations from the application rubric
