Auditor Galloway recommends improvements to accounting controls, procurement policies, and real estate practices at city of St. Louis Community and Economic Development Offices

Missouri State Auditor Nicole Galloway today released an audit of the city of St. Louis Community and Economic Development Offices. Community and Economic Development offices include the Affordable Housing Commission, the Community Development Administration, Planning and Urban Design Agency, the Economic Development Tax Board, the St. Louis Development Corporation, Land Reutilization Authority, Land Clearance for Redevelopment Authority, and the Port Authority Commission.

The report, which gives a rating of "good," is part of the on-going comprehensive audit of the city of St. Louis government.

Auditors recommended several areas for improvement in the St. Louis Development Corporation's (SLDC) controls and procedures for managing Land Reutilization Authority (LRA) and Land Clearance for Redevelopment Authority (LCRA) receipts, procurement, and property sales. The SLDC's Real Estate Department facilitates real estate development throughout the city. The SLDC's Development Incentive Department facilitates the expansion and retention of businesses through review of development proposals that include requests for public assistance in the form of tax abatements or tax-exempt revenue bonds. The SLDC's Finance Department handles all financial functions for the SLDC and the economic development authorities it represents. The audit found that procedures for receipting, recording, transmitting, and depositing receipts by these various departments need improvement.

Additionally, auditors found SLDC Finance Department personnel have not periodically conducted a competitive selection process for the management of LCRA owned parking facilities, that SLDC policies for LRA land sale pricing are outdated, and the SLDC does not have pricing policies for the sale of LCRA owned property. SLDC Real Estate Department personnel do not always obtain appraisals or other support for the value of LCRA property to be sold. The audit recommends the SLDC periodically solicit competitive proposals for contracts, update the LRA's standard price list to ensure prices reflect the fair value of the property, and develop a pricing policy for the sale of LCRA property and retain documentation to support sales prices.

The audit also found the Community Development Administration's (CDA) oversight procedures for Community Development Block Grants (CDBG) need improvement. The CDA is primarily responsible for the administration of federal funds for housing projects and community and economic development programs. Auditors recommended the CDA ensure that receipts are recorded and transmitted timely and intact and receipt records are reconciled and technical assistance monitoring visits are performed for all higher risk agencies as required by the CDA's program monitoring guide.

A complete copy of the audit is available here.