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 | ||
$4,535.4 | $1,461.3 | $32,763.4 | $30,160.8 | $68,920.9 | 285 | 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 | ||
$2,512.6 | $330.8 | $205,790.2 | $8,092.6 | $216,726.2 | 126 | 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 | ||
$487.2 | $0.0 | $413.5 | $0.0 | $900.7 | 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. **Now that the gaming group lost their audit position they are now doing many more gaming compliance projects - looking at annual reports and other information to flag outliers and other red-flags. Audits will only be performed on a case-by-case basis. |
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. |
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 far exceeded the target of a 1% increase for FY2020 due to the CARES stimulus payments as well as the increased Unemployment Insurance Benefit payments. PFD collections dropped, similar to the decrease in FY2017, but overall collections increased. 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 drop in audit hours in FY2013 - FY2015 is a result of diverting resources to TRMS. The drop in hours in FY2017 and 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. |
2: Funds Distribution |
Target #1: Increase disbursements of child support payments by 0.5%.
Disbursements of Child Support Payments
Due to the CARES Act, overall collections drastically increased from 0.60% to 15.6% while disbursements increased from 1.21% to 11.79%. 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
The gap between need and availability continues to grow each year across Alaska. Senior housing remains a high priority for the Corporation. As with multifamily housing production, senior housing unit development is stymied by the gap between the rents achievable and the cost of building new units. While senior housing funding has remained stable in recent years, the Alaska senior population continues to grow. This continued growth rate places further demands each year on funding from communities throughout the State. (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
Total Multi-Family Units by Fiscal Year
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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
Alaska Statute 37.13.120 defines APFC's responsibilities for the investment of the Fund. The statute requires that APFC's Board of Trustees applies the standards of the Prudent Investor Rule- emphasizing diversification and long-term goals in asset allocation strategy when making investment decisions. The Board authorizes, and APFC staff make investment decisions to maximize the risk-adjusted return of the portfolio. The Board of Trustees long-term investment objective for the Fund is to generate total returns in excess of Inflation/CPI plus 5 percent, with acceptable levels of risk. The Board has defined an approved risk guideline to delineate the amount of absolute and relative risk staff may take to achieve these investment objectives. To achieve this goal, the Fund is invested across seven asset classes in both public and private markets. The portfolio is designed to deliver compelling long-term returns under a variety of potential market conditions. For FY2020, the Fund ended the year with a value of $65.3 billion in assets under management. This is comprised of $52.4 billion in the Principal of the Fund and $12.9 billion in the Earnings Reserve Account (ERA). The portion of dedicated State of Alaska revenues deposited into the Principle in FY2020 was $319 million, which was well below FY2019's deposit of $385 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 October 20, 2020