data warehousing and audit selection...major role in overhaul of the audit division’s case...
TRANSCRIPT
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DataWarehousingandAuditSelectionRichClum– OhioRogerKoss– IllinoisGideonLowe- Michigan
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BiographiesandBriefIntroduction
• RichardClum- Administrator,OhioDepartmentofTaxation• 11½yearemployeewiththeOhioDepartmentofTaxation.MajorroleinoverhauloftheAuditDivision’sCaseManagementSystem, Data
AnalyticsInitiative,AuditSelectionProcessandcreationofnewauditprograms,whichincludedthedevelopmentof80+customauditmodels.CurrentlyleadsateamthatfocusesonBusinessIntelligenceandBusinessAnalysts.
• RogerKoss• 36-yearemployeewiththeIllinoisDepartmentofRevenuewherehehasservedasRevenueAuditorandAuditSupervisor.Currently aField
ComplianceDivisionManagerwhichoverseestheoperationsofapproximately300auditorslocatedwithinIllinoisandareasthroughouttheU.S.TheDivisionconductsapproximately4,000auditsperyearintheareasofSalesandUseTax,BusinessIncomeTaxandotherMiscellaneousTaxes.GraduatedfromIllinoisStateUniversitywithaBSinAccountingin1983andpassedtheCPAexamin1986.
• GideonLowe• 3yearemployeewiththeMichiganDepartmentofTreasury.PreviouslyservedinleadershiproleswithTargetandThermoFisher Scientific
intheirSupplyChaind andDistributionarea.HisteamsupportsthesupplyofdatatoallTreasuryDataWarehouseusers,andfocusesonprocessimprovementstosupportDataAnalyticsandGovernance.GraduatedfromMichiganStateUniversitywithadegreeinPackaging,andiscurrentlypursingaMastersofScienceinBusinessAnalyticsfromMichiganStateUniversity.
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Ohio
DataWarehousing
• Recordandanalyzeasmanydatapointsaspossible• CaseManagement• ExternalData• OhioReturnInformation
• MeasurabledataisminedinAuditLeadManagementSystem• SeparatedbyFull-ScopeandLimitedScope• MachineLearning/PredictiveModels,TrendingModels,Post
AuditComplianceModels,ComparisonModels,Etc.
AuditSelection
• Consistsof5SpecializedAuditors
• Reviewsleadsfrom63differentanalyticalmodels• Auditpoolreducedfromentiretaxpopulationdowntoapproximately100kofmodelidentified“non-compliant”taxpayers.
• Manyofthemodelsquantifytheleadsgivingthemascore,levelofnon-compliance,orestimatedunder-reportedamount
• Leadsaredispositionedasgoodorbadandprocessedbackthroughthemodelselectionalgorithms,whichallowthemtomakemoreaccuratepredictions
• Goodleadsareplacedinaqueueandassignedtoauditorsastheyrequestwork.
• Completedauditresultsaretrackedinourcasemanagementsystemandfedbackintoourauditselectionmodels.
• Newmethodologyincreasedefficiencyby56%and29%forourtwomaintaxtypes
• Generated$90millioninrevenuefromnewprogramtypes
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Illinois
DataWarehousing
• Informationobtainedfrom3rd Parties• FederalExtracts• CorporateAffiliations• W-2Data• SisterAgencyData– Intergovernmentaldatasharingagreementsarerequired
• DataAnalytics• BusinessIntelligencedata• Historicaldatabasedonpriorauditsandtypesofbusinesses
AuditSelection
• CentralizedstaffofAuditPlannerslocatedinSpringfield,Illinoisheadquarters
• Auditsareassignedalevelbaseduponvariousfactors.Auditsarethenplacedinasupervisor’sinventoryforassignmenttotheappropriatelevelofauditor
• Severalcategoriesofselectioncriteria–auditreferral,auditrequest,targetedissues,randomselection,mandatoryfollow-upaudits
• Discoveryauditorsworkonleadsestablishedbasedoncriteria
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Michigan
DataWarehousing
• EnterprisewideTeradataplatform• Multipleagenciesutilizetheplatform• SupportedbycentralizedITthroughDataCenterOperations
• Approximately3000users/accounts• 150Treasurywith30TBofdata
• Varioussourcesareintegrated• IRSdata• Businesstax• IndividualIncomeTax• OtherAgencies
AuditSelection
• DatareplicatedtoSQLServerenvironmentandviewedthroughESKORT
• PopulationprovidedtoSelectionauditorsbasedonrules
• SelectionAuditorsutilizeddatafromdatawarehousetomakeselection
• IntegratingKNIMEforfurtheruseinselectionprocess
• LeveragingDataAnalyticsandGovernanceteamforimprovedauditselection