City Auditor’s Office recommends accountability and transparency improvements to Independence Avenue CID
FOR IMMEDIATE RELEASE: April 26, 2017
The Independence Avenue Community Improvement District (IACID) should improve its accountability and transparency to the public, according to a City Auditor’s report released on Wednesday.
The audit focused on determining whether the administration of the IACID was transparent and accountable to the public.
The IACID has not established an internal control structure to protect the more than $730,000 in annual sales and use tax revenues collected from the public. Auditors identified problems in 40 percent of the expense records they reviewed. Payments and reimbursements were not always supported by appropriate documentation, some payments were made in error, incompatible duties were not segregated, and checks were not signed by two individuals as required.
The audit also determined that the IACID needs to be more transparent. The IACID board does not appear to have consistently complied with the Sunshine Law, Community Improvement District Act, and other legal requirements. Some board resolutions are not reflected in board minutes and individuals who were not board members made and seconded motions and may have voted during board meetings. The IACID has not established and maintained a consistent board meeting schedule and the IACID website has limited and sometimes inaccurate information.
The governance and management structures of the IACID and its managing agency have individuals who serve both organizations as board members, officers, and/or employees, making conflicts of interest inevitable. Board members did not follow IACID bylaws and resolution requirements to mitigate these conflicts.
The audit includes recommendations to improve the IACID’s accountability and transparency. The Board agreed with the recommendations.
To view the complete audit and other reports online, go to the City’s Auditor Office’s website. Additional updates from the City Auditor’s Office can be found by following @KCMOCityAuditor on Twitter.