Utah economic office can't tell if $249M was properly spent, audit finds

SALT LAKE CITY — A Utah legislative audit says inadequate oversight at the Governor's Office of Economic Development put $249 million in taxpayer funds at risk of being misused.

The report from the Office of the Legislative Auditor General, released this week, said past management at the agency, often referred to as GOED, meant it could not "consistently demonstrate" how some recipients of grant funding spent almost a quarter billion dollars, "or if those funds achieved the expected outcomes."

"This is (an) extremely concerning part of the audit," House Speaker Mike Schultz, R-Hooper, said after the findings were presented to a panel of lawmakers Tuesday. "Ensuring that we're good stewards of the taxpayer money is probably one of the most important things that we do up here."

The audit noted that a separate report last year from the Utah state auditor found "up to $2.8 million in misspent funds" from agency grants, meaning the "risks are not imaginary."

But auditors and lawmakers praised the recent direction of the office under the leadership of GOED Commissioner Jefferson Moss, a former House majority leader who resigned in May 2025 to lead the agency previously known as the Governor's Office of Economic Opportunity.

Moss said his office accepts the recommendations and "(looks) forward to implementing them to further strengthen the programs, policies, and procedures of GOED in addition to the changes that we continue to make to strengthen Utah's economy."

"It does give us a little comfort knowing that you got ahead of it," Schultz told Moss. "You saw the problem before the auditors got here and were working to correct that, so I just want to say thank you for that."

Final Report Word Doc 9.9

Audit criticizes past leadership

The findings from the audit primarily focused on the agency during the time it was led by Ryan Starks. GOED oversees large amounts of state grants meant to boost Utah's economy, but auditors noted that gaps in oversight between fiscal years 2023 and 2025 made it hard to determine whether millions of dollars in grants were used correctly.

Starks did not immediately return a message seeking comment from KSL.

The audit highlighted one case in particular with the Utah Beef Producers, which received a $2 million grant in January 2024 for a new meat processing facility. However, the company spent most of the money "without demonstrating progress or success," according to the audit, and it shut down less than two years after receiving the grant money.

"We recognize that starting a successful business is inherently difficult, and (Utah Beef Producers) made some efforts to bring the facility into compliance," the audit states. "However, this case demonstrates the risks that arise when GOED does not adequately account for disbursed funds or ensure they are used effectively."

The report also found that 19% of pass-through grant recipients received funds before providing a budget, and nearly half did not have a detailed expense list in their final grant reports.

"This is problematic because a budget shows GOED and the Legislature what the funds are supposed to be used for before they are given out," said Kyle Pepp, one of the report's authors.

The auditors recommended the agency establish a stronger oversight framework of grant funds and clearer processes to measure their impact.

"These issues appear to stem in part from limited follow-through in oversight processes during prior leadership," the report states. "Since the appointment of a new executive director in May 2025, GOED has taken steps to improve oversight, and we observed several positive changes.

In a statement to KSL, Gov. Spencer Cox emphasized that GOED is implementing all of the audit's recommendations, and he praised the "significant structural and procedural changes" that have been implemented under Moss's leadership.

"We're confident that things are moving in the right direction," Cox said.

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