Performance Details
Mission
The mission of the Department of Revenue is to collect, distribute and invest funds for public purposes. Alaska Constitution Article 9; AS 25.27, AS 37, AS 43
Core Services
- Funds Collection
- Funds Distribution
- Funds Investment
- Safety for Alaskans
 Results
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Core Services
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| A: Maximize compliance with current tax and gaming statutes. Details > |
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| A1: Increase audit coverage (audit activities improve compliance and revenue). Details > | |
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Results |
Core Services
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| B: Maximize the value of the funds under the stewardship of the Treasury Division. Details > |
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| B1: Portfolio Investment Officer staff is continually upgraded in experience and education. Details > | |
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Results |
Core Services
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| C: Collection and disbursement of child support due to the children served by Child Support Services Division.
Details > |
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| C1: Improve the environment necessary for increased collections. Details > | |
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Results |
Core Services
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| D: Improve business efficiencies and safety for Department employees investigating criminal activity related to the collection and distribution of funds for the Tax, Child Support Services and Permanent Fund Dividend Divisions.
Details > |
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| D1: Centralize all investigation staff from three divisions to one unit under the direction of the Commissioner to reduce duplication of efforts and combine some activities that would accommodate the needs of more than one program. Details > |
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Performance Detail
| A:
Result - Maximize compliance with current tax and gaming statutes. |
| A1:
Core Service - Increase audit coverage (audit activities improve compliance and revenue). |
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Target #1: Open 20 new audit cases (taxpayers that have not been audited by the Tax Division in the prior five years).
Number of New Audit Cases Opened
| Fiscal Year |
# of Audit Cases |
| FY 2011 |
35
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| FY 2010 |
36
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| FY 2009 |
40
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| FY 2008 |
78
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| FY 2007 |
42
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Analysis of results and challenges: The Tax Division maintains 100% coverage in oil and gas income and production taxes. An audit presence in each of the other tax types improves long-term voluntary compliance as well as generates new audit revenues. Furthermore, once established, audit generated revenues tend to recur as taxpayers modify their reporting to become consistent with the audit findings. Not included in the new audit count are audits of exploration tax credit claims by existing taxpayers. These audits do not meet our definition of "new audits" although they represent new and expanded audit efforts by the division.
The division exceeded its goal in FY2011 as a result of new and stable audit staff in the Production, Corporate and Excise tax units. As in FY2010, we limited the scope on several audits, choosing to look at several taxpayers with similar audit issues as opposed to conducting a full audit of a few taxpayers. Limited scope audits not only allow us to audit more taxpayers, but they also allow us to focus on audit issues that have a greater return to the State. We also opened several full-scope audits with the intent of looking at all aspects of the taxpayer’s business, from internal controls to record keeping to compliance which resulted in fewer new audits from the previous year, but still above our goal.
We view twenty new audit subjects annually as an appropriate target and this remains our goal for FY2012.
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| B:
Result - Maximize the value of the funds under the stewardship of the Treasury Division. |
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Target #1: For the funds under the fiduciary responsibility of the Commissioner of Revenue, exceed the applicable 1-year target returns.
Methodology: FY2012 one-year return data is for the period 7/1/2011 through 6/30/2012.
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One-year Return Data for Funds Managed by the Treasury Division
| Fiscal Year |
Fund |
Actual Return |
Target Return |
| FY 2012 |
Gen Fund/Other Non-segregated Fu
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1.52%
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1..04%
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| FY 2012 |
Public School Trust Fund
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5.84%
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6.29%
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| FY 2012 |
Int'l Airports Revenue Fund
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2.06%
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1.59%
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| FY 2012 |
Const Budg Resv Fund-Main Acc
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3.22%
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2.80%
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| FY 2012 |
Const Budg Resv Fund- Sub Acc
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.48%
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-.12%
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| FY 2012 |
Retirement Hlth Ins Fund-LongTer
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3.97%
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3.57%
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| FY 2012 |
Retirement Hlth Ins Fund- Maj Me
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.41%
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.05%
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| FY 2012 |
Power Cost Equalization Fund
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1.67%
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1.19%
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| FY 2012 |
Int'l Airports Development Fund
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1.86%
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1.57%
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Analysis of results and challenges: A combination of investments that is expected to produce the highest investment return for a given amount of risk is known as a "point on the efficient frontier." Each fiduciary for a fund reviews points on the efficient frontier and selects the combination of investments consistent with their appetite for risk and return of the fund. This selection is known as the target asset allocation. Target returns assume the total rate of return of passively managed indexes invested in the same proportions as the target asset allocation. A fund’s investment return will differ from its target return if its asset allocation differs from the target asset allocation or if the returns of the underlying investments differ from those of the passively managed indexes.
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| B1:
Core Service - Portfolio Investment Officer staff is continually upgraded in experience and education. |
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Target #1: Increase average longevity of the investment officers to five years.
Average Longevity of Investment Staff
| Fiscal Year |
Number of Years |
| FY 2012 |
5.8 years
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| FY 2011 |
5.4 years
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| FY 2010 |
4.8 years
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| FY 2009 |
4.4 years
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| FY 2008 |
4.2 years
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Analysis of results and challenges: A seasoned investment staff contributes to improved investment performance. Turnover of the investment officers has been minimal in the recent few years, resulting in increased longevity of investment staff.
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Target #2: At least four investment staff will have their Chartered Financial Analyst (CFA) designation.
Number of Staff Holding CFA Designation
| Fiscal Year |
Number of Staff |
| FY 2012 |
6
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| FY 2011 |
5
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| FY 2010 |
5
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| FY 2009 |
5
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| FY 2008 |
5
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Analysis of results and challenges: The Chartered Financial Analyst (CFA) designation takes a minimum of three years to obtain.
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| C:
Result - Collection and disbursement of child support due to the children served by Child Support Services Division.
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Target #1: Increase child support collections by 1.0%, net of Permanent Fund Dividend collections.
Percent Change in Total Child Support Collections for a Fiscal Year
| Fiscal Year |
% Change |
| FY 2012 |
4.22%
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| FY 2011 |
3.53%
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| FY 2010 |
-0.08%
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| FY 2009 |
-0.08%
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| FY 2008 |
3.25%
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| FY 2007 |
3.66%
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| FY 2006 |
3.72%
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Analysis of results and challenges: FY2012 collections net of Permanent Fund Dividends (PFDs) increased by 4.22% over FY2011. Collections in all categories (including PFDs) increased 4.1% in FY12.
Because the economic outlook is still uncertain as far as employment numbers are concerned, which could have a negative impact on collections, the target will be 1% for the current year and will be reevaluated again next year.
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| C1:
Core Service - Improve the environment necessary for increased collections. |
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Target #1: Ensure that paternities established are at least 95%.
Percentage of Paternities Established
| Fiscal Year |
% Established |
| FFY 2012 |
100.4%
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| FFY 2011 |
99.9%
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| FFY 2010 |
92.4%
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| FFY 2009 |
90%
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| FFY 2008 |
95%
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| FFY 2007 |
91%
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Analysis of results and challenges: Percentage of paternities established is measured by the federal government by taking the number of children statewide with paternity established or acknowledged in the current fiscal year (4174 in FFY12) divided by the number of children born out of wedlock statewide for the prior fiscal year (4156 in FFY11), which is 100%.
The number of paternities established since FFY 2006 continues to fluctuate, however the number of cases in the division needing paternity established also fluctuates. This percentage has gone up and down over the years and is due to contingent factors that are out of the division's control such as cases that are still working their way through the court system, increases in the number of unwed births, or cases where no attempt is made by the family to establish paternity.
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Target #2: Increase child support cases with orders to 93.5%.
Percentage of Cases with Orders
| Fiscal Year |
Cases with Orders |
Change from Prior Year |
| FY 2012 |
90.3%
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-2.9%
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| FY 2011 |
93.0%
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1.5%
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| FY 2010 |
91.5%
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-1.5%
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| FY 2009 |
93.0%
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-0.9%
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| FY 2008 |
93.9%
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0.2%
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| FY 2007 |
93.7%
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0.5%
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Analysis of results and challenges: A case is eligible for collection when a court or administrative order has been established. Collections cannot be made without a proper order in place. Establishing this quickly and effectively is one of the keys to a successful child support program. Reviewing and streamlining the division's process in establishing orders will aid in the timeliness of collecting and distributing child support.
We continue to struggle with staff turnover and the time that it takes to train new staff on the complex processes of child support. We anticipate that the division will be able to meet or exceed our target in FY14 as we continue to assign resources to focus on this area in order to bring this measure more in line with the target of 93.5% of cases with orders.
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| D:
Result - Improve business efficiencies and safety for Department employees investigating criminal activity related to the collection and distribution of funds for the Tax, Child Support Services and Permanent Fund Dividend Divisions.
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| D1:
Core Service - Centralize all investigation staff from three divisions to one unit under the direction of the Commissioner to reduce duplication of efforts and combine some activities that would accommodate the needs of more than one program. |
Current as of November 2, 2012
