Risks Dollars Policies/Administration Technology Management

Transcription

1 Overview by: Virginia Porter, Dallas County Auditor Auditing the Tax Office by: Tim Morton, Dallas County Vehicle Registration by: Julie Hillhouse, Tarrant County Tax Office Reorganization by: Kathy Hollomon, Navarro County Scope Tax codes Controls Risks Dollars Policies/Administration Technology Management 1

2 Elements Property Tax Exemptions Vehicle Registration Special Inventory Scofflaw Occupation Liquor/Wine Unclaimed Funds Sales Tax Risks Technology Certified Roll Banking Credit Cards Data Sensitivity Ø Memorandum s Scope s Procedures sstatistical Information 2

3 Memorandum TO Honorable John R. Ames, CTA Tax Assessor Collector FROM Virginia Porter County Auditor SUBJECT Tax Office Review for Period Ending December 2011 DATE Issued: May 10, 2012 Released: July 13, 2012 SCOPE We performed ongoing reviews on the financial records and operational processes of the Dallas County Tax Office for the 20 calendar year. The Tax Assessor-Collector collects ad valorem taxes, vehicle registration fees, vehicle surcharges, certificate of title fees, vehicle sales taxes, title service and runner license fees, beer and wine license fees, liquor fees, Occupation sticker fees, scofflaw fees, and special inventory taxes. Approximately $ in receipts were collected and processed by the Tax Office during the fiscal year ending September 30, 20. PROCEDURES Internal control issues on operations are evaluated on an ongoing basis with exceptions briefed to key staff of the Tax Assessor-Collector and the County Auditor throughout the year. Controls are categorized and evaluated using risk assessment techniques. A random sampling of the total activity was selected for certain procedures, while others were reviewed in their entirety. Review steps included, but were not limited to the following: 3

4 A. Property Tax Appraisal & Collection s Monthly ad valorem tax collection reports s Internet collections of property taxes s Value levy adjustments s Agreed adjustments s assessment s Certified roll B. Accounting / Reconciliation s Bankruptcy payments received from trustees s Bank reconciliations, Automated Clearing House (ACH) transfers/credit cards - -- Manual NSF processing - -- Remittance Processing System (RPS) processing - -- Stale date s Proofs of Cash s Refunds to taxpayers and overpayments s Undisbursed refunds s Weekly Registration and Title System (RTS) reports and related ACH transfers C. Security Cash and Technology s Security for system access, including authorization for voided transactions s Manual cash handling procedures s System voids s Online processing/system post controls D. Economic Development/Tax Exemptions (Tax Code 11) s Tax increment finance (TIF) districts s Abatements and historic exemptions s Agriculture (AG) exemptions E. Employee Development/Time and Attendance s Training and procedures s Incentive programs s Time and attendance 4

5 F. Non-Property Tax Activity s Special Inventory s Beer and wine s Vehicle registration s Third-party reports and remittance of Internet collections of MV registrations s Special tax s Purchasing procedures s Contracts s Scofflaw G. Other s Third-party audit (SOC) s Collection contracts (cost per parcel) s Unclaimed funds s Mailing statements FY20XX Statistical Information Over $ in receipts processed Over property tax accounts Over registration transactions Over title transactions entity property tax or special assessment collections Over credit / debit card transactions Over e-check transactions Our consideration of the control environment over financial reporting incorporated a review of standard risk elements: Authority and responsibility Size and complexity of operations Management philosophy Organizational structure Technology policies Other economic and political issues 5

6 While inherent risks for the property tax and MV divisions are high due to approximately $ in receipts processed, significant contracts, and extensive regulatory codes, the attitude and action of management provide discipline and structure. No irregularities or intentional misstatement or omission in fraudulent or misleading statements were identified during our review. However, we have identified processes with differing risk factors for consideration by management. Overall risks are considered normal or low unless otherwise noted. Motor Vehicle Division Check Kiting Scheme 12 6

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9 Integrating Major Sections 1) Ad Valorem Taxes 2) Vehicle Registration Objective Ø Reduce Budget Ø Share Resources 9

10 Challenges Ø Merge Cash Controls Ø Automated Report 10