Follow-up on 2010 TIF Audit

Executive Summary

In June 2010, the Inspector General’s Office (IGO) issued an audit report related to Tax Increment Financing (TIF) processes and procedures. This audit focused on expenditures of the Central Loop and Central West TIF districts from January 1, 2003 to December 31, 2007. Based upon the results of the original audit, we determined that internal controls were not adequate to ensure effective management of the TIF expenditures we reviewed, as related to the State of Illinois TIF Act, 65 ILCS 5/11-74.4 et seq. (“The TIF Act”).

Based on the follow-up responses, the IGO concludes that overall the City has taken adequate action on the recommendations made in the 2010 audit. Some actions have not been completed but significant progress has been made. Specifically, the Office of Budget and Management reported that it was still working with the Department of Finance to create new TIF expenditure policies but would forward those to the IGO when they were completed. In addition, the City has not acted on the IGO’s recommendation to publish meeting minutes, attendees, and decision criteria for the City’s internal TIF Task Force on-line in order to make porting decisions more transparent to the public and City Council. We continue to recommend that the City make this information easily accessible on its web site.