RD499 - Virginia Economic Development Partnership Annual Report – Fiscal Year 2018

Executive Summary:

As Chairman of the Board of Directors for the Virginia Economic Development Partnership Authority (VEDP), I am pleased to present our Annual Report for the fiscal year ending June 30, 2018. This report is being submitted in accordance with the requirements of the Code of Virginia and the 2018 Appropriation Act.

Previous editions of VEDP’s annual report typically went well beyond fulfilling the narrow statutory requirements for the annual report in order to provide a comprehensive report on VEDP’s activities. Following the adoption of Code provisions in 2017 that call for several new VEDP planning documents and establish related reporting requirements, the 2018 edition of this report is more narrowly focused on the original legislative requirements and does not include certain appendices that had been previously published.(*1)

Over the past year, VEDP has significantly improved the quantity and usefulness of information made available to the Governor, members of the General Assembly, and the public. In addition to enhancing transparency with stakeholders, these newly-developed plans articulate VEDP’s goals and strategies for fostering greater economic prosperity throughout the Commonwealth. One of VEDP’s most significant achievements for FY 2018 was the development of its new Strategic Plan for Economic Development of the Commonwealth. This Strategic Plan not only outlines multiple transformational goals for Virginia and VEDP, but also includes specific strategies and initiatives needed to realize this vision over the next five years. To advance the initiatives set forth in its Strategic Plan, VEDP also developed an Operational Plan in FY 2018, which outlines major initiatives and other activities across all VEDP divisions with deliverables and deadlines for the year. An Operational Plan tracker was implemented to help ensure adequate progress is made and owners are held accountable. Lastly, VEDP’s Marketing Plan describes its marketing goals, the specific activities that will be undertaken to support each goal, and performance measures to track progress.

These new plans stem, in part, from Code provisions related to the recommendations made by the Joint Legislative Audit & Review Commission (JLARC) in their November 2016 report entitled “Management and Accountability of the Virginia Economic Development Partnership". One of VEDP’s top priorities in FY 2018 focused on addressing the report’s recommendations. By the end of FY 2018, VEDP had completed implementation of all 27 JLARC recommendations that called for action by VEDP and/or the VEDP Board of Directors (Appendix 4). In addition to addressing JLARC’s recommendations, VEDP also completed implementation of new provisions in the Code of Virginia that were adopted in 2017 following publication of the JLARC report. Many of the new Code provisions reinforce or otherwise complement the recommendations made by JLARC.

VEDP’s Audited Basic Financial Statements for the year ended June 30, 2018 include an unqualified audit opinion from the Auditor of Public Accounts (Appendix 1). This is the 23rd consecutive year that an unqualified opinion has been issued to VEDP. The Auditor also issued a separate letter on VEDP’s internal controls and compliance dated November 1, 2018, with no findings identified.

VEDP is positioning itself to be a leader in the economic development community and to fulfill its mission to enhance the quality of life and raise the standard of living for all Virginians. I am thankful for the talented and dedicated VEDP team that will make our goals a reality. As we continue to execute our ambitious strategic vision, I am also grateful for the support and guidance of the Governor and his Administration, members of the General Assembly, the VEDP Board of Directors, and our state, regional, and local partners. I look forward to our continued collaboration in the year to come.
(*1) These appendixes included data on sites and buildings, announcements, new jobs, and capital investment in Virginia.


/s/ Vincent J. Mastracco, Jr.
Chairman, VEDP Board of Directors