Implementing a new auditor training program will increase

Implementing a new auditor training program will increase taxpayer compliance and increase auditor productivity. Key 1. points: 60 hours of training results in 34% increase in productivity 2. The private sector has proven that firms who invest large amounts of money in training outperform the S+P 500 by a factor of two (113% vs 55%) 3. According to Jack Phillips, there is a significant correlation between revenue and training

Colorado DOR Field Audit Assessments 90 Millions 80 70 60 50 40 30 20 10 0 2001 2002 2003 2004 Field Audit assessments have generally remained stagnant With a proper training program, assessments would increase along with productivity Currently the CDOR does not have a training program Ref: See section 20

CDOR’s current training program and its effects Minimal Training Morale Efficiency • Underperforming auditors • Increased gap in hierarchy • Increased pressure on new employees • Increased chance for audit mistakes • Slower audit process • Decreased number of audits Results • Increase in employment turnover • Hiring new employees is costly • Stagnant or decline in revenue

The bottom line: Inefficient auditors = Stagnant or decrease in revenue which results in… • Decrease in advancements – Not acquiring new technology – Missed opportunities due to lack of funds • Budget cuts – Loss of existing benefits as well as implementation of new ones • Freeze on promotions – Or even demotion • Layoffs, downsizing, and furlough days

Turning Point Options: ◦ Maintain current training processes No increase in compliance or revenue ◦ Incorporate new training to increase compliance and efficiency of auditors Establish new incentives (monetary and nonmonetary) Training Manager Performance Reviews and Training tests Ref: See section 18

The Key to Success 250 Colorado Vs. Arizona Field Audit Asessments 200 150 Millions Training Increased auditor efficiency Dramatic results in other states Assessments Arizona Colorado 100 50 0 2003 2004 2005 2006 2007 Ref: See section 16

The Right Training Program Based on a model that has worked for other states Customizable to meet the specific needs of the CDOR Best/Worst Case Scenarios Ref: See section 16