FOR IMMEDIATE RELEASE: Sept. 30, 2003
Performance audit on controls over TIF expenditures released
Today, the City Auditor’s Office released a report on controls over tax increment financing expenditures. The purpose of TIF is to reduce or eliminate adverse conditions in an area and to enhance the tax base by encouraging real estate development and redevelopment.
The report concluded that the TIF Commission has not established basic internal controls to protect, manage, and account for the public dollars for which it is responsible. TIF staff could not provide sufficient support for more than $7 million in developer expenses approved for reimbursement by the TIF Commission in fiscal year 2002. In addition, the TIF Commission underpaid Kansas City and Clay County by more than $3 million and transferred more than $1 million to the Economic Development Corporation for undocumented expenses.
The report includes recommendations for establishing a policy on reimbursable expenses, and strengthening internal controls and the certification process. The report also recommends the City consider providing administrative support to the TIF Commission through City departments if an adequate internal control system is not developed. Management agreed with the recommendations.
This report can be accessed from the City’s Web site at http://www.kcmo.org beginning Oct. 1.