This document discusses 10 myths about internal controls in property tax collection offices. It addresses myths such as the idea that few care about internal controls, that audits never find weaknesses, and that employees do not need to understand internal controls. The document explores concepts like ethics, transparency, and establishing a climate of shared responsibility around internal controls.

1. Ten Myths About Internal Controls & the Property Tax Collection Office IAAO Annual Conference September 1, 2010 Presented by Tax Collection Council members Tina Morton, Sylvia Romo & Kim Simpson

2. Myth #1: few care about internal controlsDefinitionAudit, auditors and their rolesDoes the public care?Why everyone in the office should care

3. Myth #2: Internal Controls are the same in all officesOffices vary with responsibilitiesEffect of operations other than tax collectionSize, location and use of technology

4. Myth #3: Audits always find weakneses in internal controlsDefine audit and types of auditInternal audit a performance evaluation toolAudit covers specifics – may not address human factors

5. Myth #4: Collection offices are not impacted by others’ criminal acts Discuss concept of public trust and how it has eroded with private / public failuresDefine voluntary complianceRelate voluntary compliance to public trust – what does having it mean for our collection rates?Perception of wrong-doingIf there is a problem, is it better to expose or hide?

6. Myth #5: Ethical behavior among employees varies littleDefine ethicsValue of written ethical conduct policyEthical decision making has changed completely over the last 3 decades

7. Myth #6: Employees do not need to understand internal controlsCritical need to understand internal controls and therefore, performance expectationsSustainable training program neededPersonal accountability for funds

8. Myth #7: Specific internal controls, such as a cash handling policy, should be updated before the annual auditPolicy for the auditor only misses the pointDynamic nature of efficient / effective policies and systemsSometimes a policy needs an overhaul

9. Myth #8: Theft & fraud are unpredictableGood internal controls provide means to address theft & fraudReporting responsibilitiesClarify criminal penalties

10. Myth #9: Internal controls should not be made publicTransparencyWhat are limits to transparency if any?Educating the public may lead to better understanding / acceptance of unpopular policies, like NSF fees

11. Myth #10: With adequate policies in place, internal control problems can be EASILY identified & resolved.It’s never easyEstablish & maintain climate of shared responsibilityRecognize & reward behavior that helps to standardize desired ethical conductPromote communication about policy & encourage input for improvement