Implementing a new auditor training program will increase taxpayer compliance and increase auditor productivity. Key points: 1. 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 Engagement

Colorado DOR Field Audit Assessments Backstory 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 Efficiency 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 Morale Underperforming auditors Increased gap in hierarchy Increased pressure on new employees

The bottom line: Poorly trained employees = 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 Bring it to a boil

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 non- monetary) Training Manager Performance Reviews and Training tests Offer Choices Ref: See section 18

The Key to Success Training Increased auditor efficiency Dramatic results in other states Provide Resolution 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 Set up the “sequel” Ref: See section 16