Real Property Audit Fiscal Office January 1, 2021- December 31, 2021

The Cuyahoga County Department of Internal Auditing (DIA) has conducted an audit of Fiscal Office processes and procedures relating to revenue and receivables of real property taxes for the period of January 1, 2021 – December 31, 2021. The audit’s objective was to assess the adequacy, completeness, and accuracy of the revenue generation process for real property operations from appraisal to collection. To accomplish the audit’s objectives DIA conducted interviews with management and staff regarding the procedures that various departments perform related to the life cycle of real property taxes. The adequacy, completeness, and accuracy of real property was assessed through a review of various Cuyahoga County departments: Appraisal, Real Property, Transfer & Recording, and the Treasury. Audit procedures disclosed internal control weaknesses related to a lack of complete policies and procedures, segregation of duties or supervisor approval, accuracy of agricultural property values, and reconciliation of payment collections. Recommendations made to management included to update policies and procedures, institute processes for Accounts Payable to mail out refund checks for property owners, create documented procedures for how triennial factors are calculated for groups of parcels and how exempt parcels are to be reviewed as part of the sexennial valuation, implement cash collection internal controls such as installation of new cameras and segregation of duties, perform a more in depth review of legal descriptions on property transfer documents, and fulfill current vacancies to mitigate risk from staff shortages.