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Audit of City’s TIF Expenditure Processes and Procedures

June 29, 2010

Summary

The Inspector General’s Office completed an audit of processes and procedures related to Tax Increment Financing (TIF) expenditures between January 1, 2003 and December 31, 2007 for the Central Loop and Central West TIF districts.

Executive Summary

Additionally, IGO reviewed TIF district porting and transfers for the years 1997 through 2007. Our purpose was to test and evaluate activities performed to ensure effective and efficient operations and compliance with policies and procedures, and to evaluate the effectiveness of controls related to the payment of expenditures using TIF funds. Based upon the results of our audit, we determined internal controls were not adequate to ensure effective management of TIF expenditures we reviewed, as related to the State of Illinois TIF Act, 65 ILCS 5/11-74.4 et seq. first adopted in 1977 and amended from time to time. Additionally we believe that TIF–related activities are not sufficiently transparent.

Audit of City’s TIF Expenditure Processes and Procedures - publication cover