Controller's Office Audit Identifies Cash Management Issues in TIRZ Fund 2409
July 6, 2017 -- The Houston City Controller's Office released a performance audit of Tax Increment Reinvestment Zone (TIRZ) Fund 2409 today. Encompassing Fiscal Years 2015 and 2016, the audit has identified several cash management issues and procedural improvement opportunities in the oversight of the fund.
“The TIRZ Fund 2409 audit is something we've been working on for a while now," said Houston City Controller Chris Brown. "As the City of Houston continues to address the growing need for affordable housing within its boundaries, we believe this audit helps ensure that every resource is made available for the further development of affordable options for our residents."
Tax Increment Reinvestment Zones (TIRZs) are special zones created to attract new investment in an area. TIRZs help finance costs of redevelopment and encourage development in areas that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set-aside in a fund to finance public improvements within the boundaries of the zone.
Administered by the Housing and Community Development Department (HCDD), TIRZ Fund 2409 is dedicated to providing affordable housing options for local residents.
The TIRZ Fund 2409 audit features five findings and makes recommended improvements in expenditure documentation, cash management options for fund transfers, transfers within Fund 2409, payment timelines, and consistency in funding levels.
“This audit is really about the city being a more effective steward of taxpayer dollars,” added Controller Brown. "During these lean budgetary times, it's critically important that we maximize the impact of every dollar - this audit helps get us one step closer to that goal."
The full TIRZ Fund 2409 audit can be found via the following link: http://www.houstontx.gov/controller/audit/auditreports.html.