06/28/2016
Missouri State Auditor Nicole Galloway today issued her audit of Cass County tax increment financing (TIF) procedures. County officials requested an audit after the Belton school district questioned the accuracy of information it received from the county clerk. Auditors determined that, due to errors made by the former assessor and clerk, the school district could have generated an additional $52,000 in property taxes and received $265,000 less in funding under the state's funding formula.
"This is a concrete example of the critical need for checks and balances across government offices," Auditor Galloway said. "Belton's students and families were directly impacted by what boiled down to miscalculations, and without appropriate oversight, those mistakes went undetected for too long."
TIFs are economic development tools for municipalities to assist with financing community revitalization. Increased tax revenue resulting from development is used in part to pay for the project. Other revenue is directed to local taxing authorities, such as schools and fire protection districts.
The audit also identified an underpayment of $23,016 to a Raymore-area fire protection district. The City of Raymore corrected the error after auditors notified them of the issue.
Auditors examined county procedures relating to 12 TIF districts that existed between 2004-2015. They found reporting errors occurred in three years -- 2004, 2005 and 2006 -- for one district, the Mullen TIF district in Belton. Because of the errors, four taxing authorities could have generated additional property tax revenue. In addition to the amount the school district could have generated, the City of Belton, Cass County Library, and Metropolitan Community College District could have generated an additional $144,000, $5,000, $2,000 in property tax revenue, respectively. Auditors recommended increased oversight procedures to decrease the risk of future miscalculations.
The audit is available online here.
