Key Performance Indicators
Department of Revenue
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
Key Performance Indicators
2. | Funds Distribution
Distribution activities for the Department of Revenue include but are not limited to: Permanent Fund Dividend Division distribution of Permanent Fund Dividends to eligible Alaskans, Child Support Services distributing payments to the custodial parent, and Tax Division distributing shared taxes to communities. |
Funding | Positions | ||||||
UGF Funds | DGF Funds | Other Funds | Federal Funds | Total Funds | Full Time | Part Time | Non Perm | ||
$4,632.3 | $1,073.7 | $74,449.8 | $152,808.3 | $232,964.1 | 284 | 9 | 6 |
3. | Funds Investment
Funds Investment activities for the Department of Revenue include but are not limited to: Permanent Fund Corporation investment of the fund, Treasury and Alaska Retirement Management Board (ARMB) investment of the state's funds and retirement systems, and Alaska Mental Health Trust Authority (AMHTA) and Alaska Housing Finance Corporation (AHFC) corporate investments. |
Funding | Positions | ||||||
UGF Funds | DGF Funds | Other Funds | Federal Funds | Total Funds | Full Time | Part Time | Non Perm | ||
$1,705.7 | $1,144.3 | $273,951.0 | $46,079.3 | $322,880.3 | 128 | 5 | 4 |
4. | Safety for Alaskans The Long Term Care Ombudsman is located with the Alaska Mental Health Trust Authority and performs investigations of complaints regarding Alaskans in long term care who may be experiencing a negative care situation. |
Funding | Positions | ||||||
UGF Funds | DGF Funds | Other Funds | Federal Funds | Total Funds | Full Time | Part Time | Non Perm | ||
$525.8 | $0.0 | $414.8 | $0.0 | $940.6 | 6 | 0 | 0 |
Performance Detail
1: Funds Collection |
Target #1: Conduct five new compliance projects to identify non-filers.
Compliance Projects Conducted
Compliance projects include analyzing databases of other states, the federal government, and local agencies to ensure that a person engaged in a taxable activity is filing required tax returns. In the past, the Tax Division has also conducted taxpayer outreach and education through attendance at industry meetings and conferences. |
Target #2: 90% of existing taxpayers file their tax returns and make tax payments timely.
Taxpayers Filing and Paying Taxes Timely
TRMS has a public facing component which allows taxpayers to file and make payments online. The Tax Division has had great success with this system and believes it is a factor in the performance reported. There were challenges this past fiscal year due to the economic impacts of COVID-19. Some of the tax programs had delayed due dates for filing and payment due to legislative changes. |
Target #3: Increase child support collections by 1.0%, to include Permanent Fund Dividend collections.
Percent Change in Total Child Support Collections for a Fiscal Year
The division did not exceed the target of a 1% increase over FY2021. This is due to the ending of the CARES stimulus payments as well as the increased Unemployment Insurance Benefit payments. This is still an increase from where the division was prior to the CARES stimulus funds and the collections will normalize over the next reporting period. The goal for the next fiscal year remains a 1% increase. |
Target #4: 1,000 hour increase in audit hours over prior year.
Change in Audit Hours over Prior Year
The Tax Division strives to increase its year-over-year audit hours in an effort to be more efficient with its time and spend auditor time on things that will generate the greatest benefit to the State. The Tax Division began design and development of its TRMS in April of 2013. In order to ensure that implementation was successful, the Tax Division deliberately cut back on the number of audits conducted and diverted those resources to the implementation of TRMS. Full implementation of TRMS was completed in February of 2016. The project took a lot of our audit staff time in design and testing at various stages. The decrease in audit hours in FY2013 - FY2015 is a result of diverting resources to TRMS. The decrease in hours in FY2017 - FY2018 can partially be explained by the fact that there have been significant changes in the oil and gas production tax regime which has required programming changes to TRMS. The oil and gas production tax and corporate income tax Audit Groups remain current on all oil and gas audits. We made significant strides this past year in increasing our audit hours which you can see in the table above. This past year resulted in a decrease in overall audit hours. This decrease is primarily due to vacant positions and long-term leave by some audit staff. The expectation is that these numbers will reverse and increase for the next annual period. |
2: Funds Distribution |
Target #1: Increase disbursements of child support payments by 0.5%.
Disbursements of Child Support Payments
Due to the CARES Act and enhanced unemployment payments ending, overall collections decreased by 8.02% while disbursements decreased 4.54%. This is still a substantial increase from where we were before the CARES Act funding was put in place. The collections are normalizing and will continue to do so. The division continues to focus on improving processes and implementing technology to meet our target increase of 0.5% in child support disbursements. |
Target #2: Maintain or reduce administrative costs from year to year.
Estimated Cost per Dividend Paid
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Target #3: Increase Senior Housing units
Senior housing remains a high priority for the Corporation. While funding for senior housing has remained stable in recent years, the Alaska senior population continues to grow. This places a demand on communities throughout the State to fund the growing gap between housing need and availability, in a market where there is also a gap between the rents achievable and the cost of building new senior housing units. Note: Although AHFC provides mortgage financing for assisted living facilities, those developments report beds rather than units; consequently, the data above excludes AHFC mortgages to assisted living properties. |
Target #4: Increase Multi-Family units
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3: Funds Investment |
Target #1: For the funds under the fiduciary responsibility of the Commissioner of Revenue, exceed the applicable 1-year target returns.
One-year Return Data for Funds Managed by the Treasury Division
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Target #2: A long-term 5% real rate of return
Rolling 10-year real rate of return; annualized returns for periods ended June 30
The Board of Trustees' long-term investment objective for the Fund is to generate total returns in excess of Inflation/CPI plus 5%, with acceptable levels of risk. The Board has defined an approved risk guideline to delineate the absolute and relative risk staff may take to achieve these investment objectives. The Fund is invested across seven asset classes in both public and private markets to achieve this goal. The portfolio is designed to deliver compelling long-term returns under a variety of potential market conditions. The Alaska Permanent Fund's (APFC) long-term rolling 10-year Real Rate of Return for the fiscal year period (FY) 2012-2021 was 7.3% with an inflation rate of 1.7%, and the Total Rate of Return for the same period was 9.0%. The Fund's annualized total return for 37.5 years, ended June 30, 2021, was 9.12%. For FY2021, the Fund ended the year with a value of $81.9 billion in assets under management (AUM). This is comprised of $60.7 billion in the Principal of the Fund and $21.2 billion in the Earnings Reserve Account (ERA). The portion of dedicated State of Alaska revenues deposited into the Fund's Principal (or "corpus") is based on mineral prices and production. In FY2021, this amount came in at $320 million, just above FY2020's deposits of $319 million. |
Target #3: Formal visit, bond issue update, or updated document template sent or presented to ratings agencies at least four times per year.
Updates Provided to Ratings Agencies
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Target #4: 100% of new financings will result in savings or diminished administrative effort.
New Financings That Resulted in Savings
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4: Safety for Alaskans |
Target #1: 90% of all complaints received by the LTCO program are resolved to the satisfaction of the resident or their representative.
Complaints Resolved to Satisfaction or Partial Satisfaction of Complainant
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Current as of December 16, 2021