Performance Management Practices

Delaware Quality PartnershipApril 1, 2011Office of the

Secretary

Department Overview

Mission:

To provide leadership in securing, allocating, managing and accounting for financial resources critical to the delivery of governmental services and promotion of Delaware’s economic health.

Overview

Franchise Tax

Alcoholic Beverage Tax

Realty Transfer Tax

Public Utility

Corporate Income Tax

Cigarette TaxesLottery

OtherBus.& Occup.

Gross Rec

Abandoned Property

Individual Income Tax

Insurance Taxes Dividend & Interest Motor Vehicle & Fuel Tax

Bank Franchise Tax

Hospital Board & Treatment

Business Entity Fees

Estate Tax

Business Units:

•Office of the Secretary

•Division of Accounting

•Lottery

•Division of Revenue

Primary Activities:

•Collect about 70% of GF Revenues

•Support Sound Fiscal Policy

•Manage the State’s accounting services and lottery systems

Performance Management Model

Budget Plan documents Mission, Objectives, & Measures

Objectives integrated with annual budget approval process

Customers-Stakeholders-Employees

DOFGoals

DOFPerf

Meas

Governor’s Goals:•Economic Development•Improve Education•Increase Efficiency

New Legislation

Statutory Missions

Office of the Secretary

Division of Accounting

Lottery Office

Division of Revenue

Annual&

Ongoing

Budget Proces

ses

Budget realities - Political urgency – Media - Do More with Less - Crisis Mgmt

Alignment & integration of Goals & Measures with Budget Processes

Performance Management Model, con’t

Continuous Performance ImprovementDGPREnterprise-wide, Cross-organizational, and

Internal Initiatives

Recognizes varying levels of maturity and capacity

Improvement Initiatives:DE Government Performance Review

Conduct a One-Time Tax Amnesty Gross Recoveries = $33MM

Improve Efficiency of Payroll & Benefits Communications E-Pay

Consolidate Shared Services State Financial FunctionsIT Consolidation

Interest Paid on Refunds Statute passed 6/30/09

Enhance Enforcement Collections Underway

E-Commerce and Going Paperless Underway

Assist Toll Collection Enforcement (Refund Intercepts) FYTD Recoveries = $45K

Priority Goals:Office of the

Secretary

Maintain secure, accurate and transparent financial systems that are consistent with recognized best practices.

• Budgeting (appropriation and debt limits, consensus revenue forecasting, multi-year expenditure forecasts, capital improvement plans)

• Rating agency “controllable” criteria

Achieve maximum revenue contributions ($263.1 million in FY12) to the state’s General Fund from Delaware’s lottery, thereby helping the delivery of services to the people of Delaware.

Financial Reporting (clean audit opinion / CAFR award)

• First State Financials

• Staff involved in monitoring project management progress and milestones

Priority Goals: Revenue

Expand the use of electronically filed returns to increase processing efficiency and accuracy while reducing refund cycle times and costs.

Integrate the Division’s technological and human resources to produce a balanced, comprehensive and cost-effective enforcement program.

Provide courteous, professional, and timely service to taxpayers

Enforced Collections: Total & $ per Enforcement Staff

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

FY07 FY08 FY09 FY10 FY11

Enfo

rcem

ent $

per

Sta

ff

$0

$5

$10

$15

$20

$25$30

$35

$40

$45

$50

in M

illio

ns

Tota

l Enf

orce

men

t $

Total Enforcement Collections (R) Enforcement $ per Staff (L)Enforc Staff Target = $6 to $1 (L)

Percent Electronic Returns & Total Staffing

0%

10%

20%

30%

40%

50%

60%

70%

FY07 FY08 FY09 FY10 FY11

Per

cent

Ele

ctro

nic

(L)

215

225

235

245

255

265

275

Tota

l Sta

ffing

(R)

% Electronic Returns (L) Total Staffing (R)% E-Return Target is 5% Growth (L)

Avg Speed to Answer Calls vs. Staffing Levels

0

5

10

15

20

25

30

35

FY07 FY08 FY09 FY10 FY11

Avg

# Se

cond

s on

Hol

d

215

225

235

245

255

265

275To

tal S

taffi

ng

Avg Speed of Answer (L) Total Staffing (R)Avg Speed of Answer Target (L)

Refund Issuance Time vs. Staffing Levels

0

5

10

15

20

25

FY07 FY08 FY09 FY10 FY11

Avg

# Da

ys to

Ref

und

215

225

235

245

255

265

275

Tota

l Sta

ffing

Electronic Refunds (L) All Refunds (L)Staffing Levels (R) Electronic Refund Target (L)

High Level

Customer Level

Project Level

Beverage Fee Compliance: Automated Call Program

Project Level, con’t

Questions or Comments?

Thank You!