Comptroller of Public Accounts
An Audit Report on the Comptroller of Public Accounts' Integrated Tax System
March 2000
Report Number 00-016
Overall Conclusion
The Integrated Tax System's controls ensure safeguarding of relevant state assets and correct reporting of tax revenues. The implementation of the Integrated Tax System, which began in 1996, has made the Comptroller of Public Accounts' (Comptroller) tax function more efficient and effective. Although the State gained additional revenues during fiscal years 1996 and 1997, management cannot ensure that the Integrated Tax System has met the requirements of a General Appropriations Act rider stipulating that $225 million in revenue increases be achieved as a result of the re-engineering efforts.
Many qualitative improvements were realized as a result of the Integrated Tax System. However, the inability to tie re-engineering efforts to efficiency gains is indicative of a larger state problem. Changes in system development methodologies throughout the State could help ensure the cost-effectiveness of future system development efforts.
Key Facts and Findings
The Integrated Tax System's controls ensure that relevant state assets are safeguarded and that tax revenues are correctly reported. The Integrated Tax System has also increased the efficiency and effectiveness of the Comptroller's tax function.
The Comptroller certified an additional $225 million in revenue during the 1996 - 1997 biennium as available in the revenue estimate it provided to the 74th Legislature. The Legislature funded the Integrated Tax System with an expectation of efficiency gains of at least this amount from the new system. However, the Comptroller is not able to clearly distinguish between revenue gains resulting from technology, as required by the General Appropriations Act rider, and those resulting from an improving economy.
Improvement of agency and state controls over system development could help ensure the cost-effectiveness of future automated systems. Effective controls could also reduce risks related to system functionality and security.
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