AUDIT COMMITTEE SUMMARY
February 21, 2017
Follow-up Audit of Tax Increment Reinvestment Zone Operations
Report Issued October 19, 2016
Objective
The objective of the follow-up audit was to determine if Planning and Community Development management effectively implemented action plans to address prior audit recommendations in the TIRZ audit.
Background
In April 2014, the Office of the City Auditor completed an audit of the Department of Planning and Community Development's (DPCD) Tax Increment Financing Program.
The objective of that audit was to determine if the appropriate controls and governance structures were in place to properly manage the Tax Increment Financing Program.
The Office of the City Auditor determined that DPCD did not have appropriate governance structures in place, resulting in operational control deficiencies.
Audit Scope & Methodology
The audit scope was limited to the recommendations and corresponding action plans from the original report for the time frame of FY 2015.
The audit methodology included interviewing key personnel in the TIF Unit and the Finance department to obtain an understanding of newly implemented controls. Additionally, we reviewed source documents such as TIRZ Board meeting minutes, the amended TIF Program Policy, and project and finance plans.
Audit Conclusions
The Department of Planning and Community Development (TIF Unit) implemented action plans to address the recommendations from the prior audit. Areas that were effectively implemented include:
* Executive Management established a Governance Committee in February 2014, which serves as counsel for the approval of new TIRZ projects and for TIRZ projects with issues or concerns.
* The 2008 TIF Program Policy was updated and approved by City Council. Additionally, internal policies and procedures over administration of the TIF Program were created and are being followed by department personnel.
* A standard process for updating finance plans for all T...
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