Colorado Department of Revenue: A Review of the Audit Assignment Process Bishop Bhandari, Brandon Dyer, Daniel Deshe, Torrence White

How do we make the audit assignment process more efficient without compromising auditor motivation? Change in audit assignment may reduce motivation of senior agents Change in audit assignment may encounter a resistance Agents may not always be assigned to audits they are best suited for Our Goal: Increase the overall efficiency of the CDOR by standardizing the audit assignment process.

CDOR Other States The Current Situation Assignments based on seniority Most agents choose audits based on location CDOR Audits are assigned to agents by a manager Agents have no choice in audits they are assigned Other States

Closer Look Status quo situation of audit assignment will: Reduce the effectiveness of audits Prevent the CDOR from developing agent skills Maintain the low motivation of junior agents

What Are Other States Doing? Managers assigns audits based on the experience level of the agents Texas Audits are put into a pool that agents can choose from Experts would have first choice South Dakota Assigned by managers based on experience Agents can request specific industry not taxpayer Washington Agents have no say Out-of-state audits based on experience and capability to complete In-state-audits are assigned based on the resident area of an agent West Virginia What Are Other States Doing?

Current vs. New Maintain current process Implement new process Current agents are satisfied with process Agents’ skill sets not matched with complexity of audits Location still basis for audit assignment Standardized system in place Reduce cost and budgeted time for audits Cost neutral to implement and maintain

A New Process Assign agents to audits base on their expertise and qualifications Motivate agents through intrinsic motivational techniques Projected Benefits: More audits would be completed with same number of agents More revenue would be generated for CDOR Agents would be more motivated to go above and beyond their responsibilities More experienced agents will be receiving the audits that they are most suited for

Questions? Thank You