UPDATED Monday, December 17, 2012 --- 3:08 p.m.

MADISON, Wis. (AP) -- An independent audit says high staff turnover, poor record keeping and a lack of basic accounting controls all contributed to problems in the first year of Wisconsin's premiere job-creation agency.

The draft audit released Monday looked at the first year of operations of the semi-private Wisconsin Economic Development Corp.

The agency has been beset with a series of problems, including not properly tracking $56 million in loans to businesses. Borrowers have fallen behind on payments on loans now worth more than $12 million.

The audit by Schneck SC says basic internal accounting controls over the loans were not in place. It also says loan agreements did not always contain approved staff or performance reviews.

WEDC officials says steps are being taken to improve operations.

Copyright 2012. The Associated Press.

________________________________________________

Posted Monday, December 17, 2012 --- 3:08 p.m.

MADISON, Wis. (AP) -- An independent auditor is expected to release details of its investigation into the state's semi-private economic development agency that's been beset with problems during its first 18 months in existence.

Accounting firm Schenck SC was expected to discuss its findings at a meeting Monday of a Wisconsin Economic Development Corp. audit committee. The accounting firm was hired by WEDC to perform the audit in the wake of several missteps, including failure to carefully track $56 million in loans to businesses.

The audit was also to be discussed at a full WEDC board meeting on Tuesday in Eau Claire.

Also on Monday, the interim head of WEDC, Reed Hall, was scheduled to appear before a state Senate committee looking at how the agency is organized and what changes could be made.

Copyright 2012. The Associated Press.