Data Warehousing and Audit Selection...Major role in overhaul of the Audit Division’s Case...
Transcript of Data Warehousing and Audit Selection...Major role in overhaul of the Audit Division’s Case...
DataWarehousingandAuditSelectionRichClum– OhioRogerKoss– IllinoisGideonLowe- Michigan
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.
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
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
Michigan
DataWarehousing
• EnterprisewideTeradataplatform• Multipleagenciesutilizetheplatform• SupportedbycentralizedITthroughDataCenterOperations
• Approximately3000users/accounts• 150Treasurywith30TBofdata
• Varioussourcesareintegrated• IRSdata• Businesstax• IndividualIncomeTax• OtherAgencies
AuditSelection
• DatareplicatedtoSQLServerenvironmentandviewedthroughESKORT
• PopulationprovidedtoSelectionauditorsbasedonrules
• SelectionAuditorsutilizeddatafromdatawarehousetomakeselection
• IntegratingKNIMEforfurtheruseinselectionprocess
• LeveragingDataAnalyticsandGovernanceteamforimprovedauditselection