COBI 2015 - Auditing Division

Overview
Issues
Performance
Financials

Sources Uses

FY 2016 Appropriation

The Auditing Division attempts to increase voluntary and involuntary taxpayer compliance through selective examination of taxpayer returns and supporting records. The division audits all taxes except property tax (local level), and conducts audits in-house and at taxpayers' places of business. The division emphasizes compliance audits for accurate tax return reporting, and review for possible investigation of suspected fraud and tax evasion. Through educational outreach and customer service, the division works to help taxpayers report future taxes properly.

Funding History

Appropriation Overview

During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $11,789,200 from all sources for Auditing Division. This is a 3.7 percent increase from Fiscal Year 2015 revised estimated amounts from all sources. The total includes $7,919,200 from the General/Education Funds, an increase of 4.1 percent from revised Fiscal Year 2015 estimates.

The coverage areas for the Auditing division include approximately 1.2 million income tax returns and another 800,000 business returns.

Audit Satisfaction Ratings

The division aims to ensure that those being audited believe they are treated fairly in the audit process. Surveys are provided at the end of every audit, allowing taxpayers to provide input to the quality of the audit process. Input can be provided anonymously or taxpayers can identify themselves when providing feedback. Taxpayers rate their response to the statement, "overall, I was satisfied with the manner in which the audit was conducted," on a scale of one to five. A rating of five indicates the taxpayer "strongly agrees" with the statement and a rating of one indicates the taxpayer "strongly disagrees" with the statement. The graph depicts the average of all responses for that fiscal year.

Number of New Accounts From Discovery Activities

The Auditing Division also considers indicative of its success the number of new accounts discovered (sales and corporate) from auditing activities. Efforts are taken to identify taxpayers that are not in compliance with state filing requirements. This measurement shows the results of those activities from year to year.

Income Tax Auditing Performance

A measurement of performance success is whether the number of income tax audits performed per year is increasing. The Auditing division sets goals for each section at the beginning of the year. The table represents indexes of the number of income tax audits performed and the hours spent on income tax audits.

Intent Language

HB0003: Item 61

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided to the Utah State Tax Commission in Item 13, Chapter 10, Laws of Utah 2014 not lapse at the close of Fiscal Year 2015. The use of nonlapsing funds is limited to the costs directly related to the modernization of tax and motor vehicle systems and processes.

HB0003: Item 61

Under Section 63J-1-603 of the Utah Code, the Legislature intends that unspent funds available from Temporary Permit Fees paid to the Motor Vehicle Enforcement Division shall transfer at the close of Fiscal Year 2015 to the new restricted fund created for the deposit of these fees.

The Auditing Division is funded mostly from the General Fund, the Education Fund, and the Tax Commission Administrative Charge Restricted Account.

Display By:

Funding Source

Expenditure Category

Appropriation Type:

Appropriation History by

Sources of Finance	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
General Fund	3,698,500	3,665,600	3,777,900	3,951,000	4,194,800	0	4,194,800	174,200	4,369,000
General Fund, One-time	0	0	0	13,100	26,900	0	26,900	3,800	30,700
Education Fund	3,186,200	3,125,700	3,035,900	3,259,900	3,358,700	0	3,358,700	136,800	3,495,500
Education Fund, One-time	0	0	0	11,800	24,300	0	24,300	(300)	24,000
Transportation Fund	563,200	563,200	563,200	563,200	563,200	0	563,200	0	563,200
Federal Funds	508,700	459,200	475,300	519,000	517,100	73,500	590,600	0	590,600
GFR - Tax Commission Administrative Char	2,266,100	2,267,300	2,348,000	2,353,600	2,468,100	0	2,468,100	107,800	2,575,900
GFR - Tobacco Settlement	0	0	0	18,500	18,500	0	18,500	0	18,500
Transfers	121,200	122,900	128,500	0	0	0	0	0	0
Transfers - Fed Pass-thru	0	0	0	127,800	121,800	0	121,800	0	121,800
Total	$10,343,900	$10,203,900	$10,328,800	$10,817,900	$11,293,400	$73,500	$11,366,900	$422,300	$11,789,200

Categories of Expenditure	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Personnel Services	9,570,700	9,306,700	9,522,000	9,980,700	10,405,300	12,800	10,418,100	334,300	10,752,400
In-state Travel	71,900	72,400	96,900	79,000	99,700	(10,800)	88,900	0	88,900
Out-of-state Travel	301,800	306,100	311,200	308,200	318,300	20,000	338,300	0	338,300
Current Expense	372,600	386,600	362,400	371,000	437,800	17,200	455,000	85,800	540,800
DP Current Expense	26,900	37,700	36,300	79,000	32,300	34,300	66,600	2,200	68,800
DP Capital Outlay	0	94,400	0	0	0	0	0	0	0
Total	$10,343,900	$10,203,900	$10,328,800	$10,817,900	$11,293,400	$73,500	$11,366,900	$422,300	$11,789,200

Show Table | Show Additional Information

Other Indicators	FY11 Actual	FY12 Actual	FY13 Actual	FY14 Actual	FY15 Approp	FY15 Change	FY15 Revised	FY16 Change	FY16 Approp
Budgeted FTE	126	126	127	125	127	0	127	0	127
Actual FTE	121.60	120.70	119.70	121.40	0	0	0	0	0

COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.