Comptroller of Public Accounts
A Management Letter on the Tax Revenue System at the Comptroller of Public Accounts
November 18, 1996
Report Number 97-016
We have recently completed an audit of the tax revenue system. Our conclusion, based on this work, is that the Comptroller Of Public Accounts (Comptroller) has effective controls over the tax revenue system. The system consists of tax collection and return processing, auditing tax returns, taxpayer identification, taxpayer education, a hearing process to resolve disputes, and enforcement to collect delinquent accounts.
The Comptroller collected over $18 billion in taxes during the year ended August 31, 1995. During the same period the Revenue Audit Division assessed $354.6 million as a result of 13,137 revenue audits. This amounted to an $11.80 return on each audit dollar spent. The Revenue Opportunity Program collected an additional $16.2 million during the 1995 fiscal year.
We commend the Comptroller's Office for actions taken on the nine recommendations in the tax revenue management report (An Audit Report on the Comptroller's Tax Revenue Management Process, SAO Report No. 95-030). Seven of the recommendations have been implemented or are in the process of implementation. We agree with management's reasons for not implementing the recommendations to require state agencies to file sales tax returns. Management has chosen not to implement the recommendation regarding the transfer of the audit, enforcement, and collection functions from the Revenue Opportunity Program.
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