Treasury Department
A Review of Revenue Audit Function of the Texas State Treasury: The Tobacco Tax Revenue Process
Report Number 95-018
Controls over the revenue collection and auditing functions could be strengthened through better segregation and documentation of duties in the Cigarette Tax Stamp section.
Prompt action should be taken, including working with the Attorney General's Office, to eliminate and collect an outstanding tax liability of about $48,000 caused by a distributor defaulting on taxes owed to the State.
A written work plan that clearly specifies audit performance expectations is needed to ensure that contracted services accomplish the Treasury's audit-related goals.
In fiscal year 1994, $572 million of cigarette and tobacco tax revenues was collected.
For every dollar of audit cost, $2.96 in additional revenues was identified for collection, based on the 64 audits performed by the Treasury in fiscal year 1994
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