The City contracted with Rubin Brown to perform 10 procedures with multiple tests within each procedure of the Development Agreement associated with the Crackerneck TIF District. Staff specifically wanted to identify any prior deviations from the contract. The time periods of the transactions to be reviewed were based on periods of employee turnover in the former Finance Department that has now been consolidated within the Finance and Administration Department.
The procedures were specifically designed to review:
1. Payments in lieu of taxes (PILOT) from the Crackerneck Creek TIF agreement and any amendments.
2. Economic Activity Taxes (EATS), from the Crackerneck Creek TIF agreement and any amendments.
3. State TIF revenues, from the copy of Certificate of Approval for the Crackerneck Creek TIF.
4. Crackerneck Creek Transportation Development District (TDD), from the Cooperative Agreement and any amendments for the District
5. I-70/Little Blue Parkway TIF, from the executed TIF agreement.
6. 39th Street TDD, from the executed TDD agreement
7. The Bass Pro Lease (Lease), from the executed Lease and any amendments and sales data for the sample periods
8. Crackerneck Creek TIF Revenue calculations, documented in a Tax Summary for the Crackerneck Creek TIF for the sample periods
9. Disbursements from the Crackerneck Creek TIF, from the TIF agreement and any amendments
10. Sales of parcels within the Crackerneck Creek TIF area, from the Crackerneck Creek TIF agreement and any amendments and documentation of sales of parcels of land during the sample periods.
There were several findings in their procedures. As expected with any complex contract, there were several findings. The majority of those findings were due to events that occurred well before any current staff were in their roles. And, as a result staff is unable to ascertain any specifics to clarify why certain events took place.
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Procedure
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Findings
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Impact
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1
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· None
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· N/A
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2
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· Hotel calculation methods were changed in 2017 per legal advice
· A journal entry adjustment was double-booked in 2016
· Hotel stays over 30 days were incorrectly included in transient tax
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· None
· $2,070 understatement in Crackerneck Creek TIF Revenues in 2016.
· $3,138 under-remittance to Crackerneck Creek TIF from April 2015-2020
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3
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· None
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· N/A
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4
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· City does not double-check State sales tax report against businesses within TDD
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· None. Staff is obtaining permission to detail reports from State
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5
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· Transfers from I-70/Little Blue Parkway TIF not made timely in 2016-2019
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· None. Staff has made and will continue to make timely transfers in 2020 and on.
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6
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· Two business were excluded in List of business from 2010-2020 in 39th Street TDD
· Hotel guest tax excluded in transfer from 39th Street TDD to Crackerneck Creek TIF from 2015-2017
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· $36,736 under-remitted from 39th Street TDD to Crackerneck Creek TIF since inception of agreement. Transfer now corrected and businesses identified
· $4,000 under-remitted from 39th Street TDD to Crackerneck Creek TIF. Decision in 2017 not to transfer under-remittance.
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7
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· None
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· N/A
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8
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· Tax Summary spreadsheet not kept up to date timely.
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· None. Tax Summary spreadsheet used for analysis only and general ledger is source of records. However, staff will keep spreadsheet up to date in timely manner in the future
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9
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· None
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· N/A
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10
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· No sale of property noted
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· None
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