For further information on the elements listed below, please see our Annual Accountability Report at http://www.scstatehouse.net/reports/aar2006/r44.pdf
1) Integration of Planning and Budgeting: The agency employs a multi-year strategic planning process that links the planning process with the annual budget review.
SCDOR is in compliance. We have reviewed the current strategic plan and have updated the language with implementation FY 07. The plan is a five year strategic plan and employs an annual business planning process to identify, prioritize and report progress in the four Key Result areas of the plan. These four Key Results are:
Maximize Compliance, Build Strong Stakeholder Relationships, Provide Effective and Efficient Agency and Enterprise Services, and Maintain a Capable, Satisfied, and Diverse Work Team.
2) Internal Audit: The agency utilizes an active internal audit process that includes:(a) programmatic reviews along with fiscal reviews;(b) consistent follow-up on audit findings; (c) reporting of the internal audit function to the institutional head and/or to the governing board, if applicable. Agencies that cannot afford a separate internal audit staff should use internal reviews that serve the same function as an internal auditor.
SCDOR is in compliance. The agency utilizes an active internal audit function that: (a) performs programmatic and fiscal reviews; (b) performs follow-up on audit findings; and (c) reports to the agency director.
3) Collaboration and Partnerships: The agency demonstrates financially beneficial collaborative efforts with other public entities in performance of business functions including, as applicable, but not limited to, financial management, energy management, printing and publications, mail service, procurement, warehousing, public safety, security, space utilization, and parking.
SCDOR is in compliance. We are currently working with The Employment Security Commission, the Secretary of State, the Department of Health and Environmental Control, Labor Licensing and Registration and other governmental entities to make the South Carolina Business One Stop (SCBOS) an interactive site where businesses can register a new business, pay taxes on-line, renew a license or change an application. Additionally, the Director is a member of the Enterprise Zone Subcommittee; serves on the Coordinating Council for Economic Development; Member, South Carolina Board of Economic Advisors and is a member of the South Carolina Agency Directors Organization. These collaboration efforts not only help us identify best practices, but also give us the opportunity to be a partner in continuously improving all governmental services for our citizens.
We partner with business groups, such as the State Chamber of Commerce, Municipal Association, Association of Counties, the Small Business Administration, the Hospitality Association, the Manufacturers Association, the SC Hospital Association, and the SC Manufacturers Alliance, and others on joint projects and provide education to these groups. Our collaboration with state partners includes the Departments of Transportation, Health and Environmental Control, Commerce, Labor, Licensing and Regulation, and the South Carolina Education Lottery, to name but a few. We regularly serve as a pilot site with the Internal Revenue Service to bring taxpayer friendly programs to South Carolina citizens. We frequently are called upon to make presentations to a wide variety of audiences about both taxation and our quality leadership approach.
4) Outsourcing and Privatization: The agency examines opportunities for contracting out various business functions, has performed cost analyses, and has implemented, where economically feasible, cost saving contracts.
SCDOR is in compliance. The DOR contracts with private collection agencies to resolve in-state, out-of-state, and difficult or aged accounts. We are also utilizing private sector companies in several areas of technology. Our Data Warehouse system for identifying collection opportunities and rewrite of our tax processing system are being accomplished through outsourcing.
5) Process Analysis: The agency makes a critical examination of its business processes in an effort to increase productivity, reduce waste and duplication, and improve the quality of services provided to its internal customers.
SCDOR is in compliance. The DOR routinely reviews processes for improvement as an iterative part of our strategic plan cycle. Examples include annual review and assessment of our major forms and processing line enhancements.
6) Use of Automation and Technology: The agency uses a long range plan for improved use of technology to enhance business processes and takes deliberate efforts to implement this technology within budget constraints.
SCDOR is in compliance. Significant technology initiatives in support of the agency’s strategic objectives reflected in the Technology Plan include the following broad initiatives:
· Replace Novell ZENWorks desktop support with Microsoft SMS.
· Update to IRM Strategic IT Plan & SCATS Replacement by the South Carolina Integrated Tax System (SCITS)
· SC-Business One Stop registration system
· Data Warehouse
7) Energy and Other Resource Conservation and Management: the agency uses a plan to conserve energy and other resources and has demonstrated positive results from the plan.
SCDOR is in compliance. The agency recycles paper through the Department of Corrections and works with Facilities management to conserve energy in it’s main building and regional offices.
8) Preventive and Deferred Maintenance: The agency uses a regular program of preventive maintenance to preserve its physical assets and has developed a plan to address overdue maintenance needs for its facilities.
SCDOR is in compliance. The agency has maintenance agreements in place for all major equipment, the primary physical assets of the agency. All facilities are leased.
9) Alternate Revenue Sources: The agency makes substantial efforts to identify and secure alternate revenue sources (excluding categorical grants for specific functions) to supplement funds available from state appropriations.
SCDOR is in compliance. The agency has secured provisos to be allowed reimbursement from revenue stream generated from new projects.
10) External Annual Financial Audit Findings: The agency minimizes or avoids all management letter and single audit findings in the annual audit performed or supervised by the State Auditor, especially violations of state law, material weaknesses, and single audit “findings” and “questioned costs.”
SCDOR is in compliance. The agency is audited twice annually by the State Auditor’s Office and has not had a significant, material audit finding for the past eight years.
11) External Review Findings: The agency minimizes or avoids all non-compliance findings related to its business practices in external reviews and audits.
SCDOR is in compliance. The agency is audited for procurement by MMO and for disclosure of federal information by the IRS. Neither of these audits resulted in findings.
12) Long Range Capital Plan: The institution uses a long range (minimum three to five years) capital improvement plan for major capital requirements for its buildings and has, subject to fund availability, begun implementation of the plan.
SCDOR is in compliance. The agency leases all of its facilities. The agency has developed long range plans for replacing many major equipment assets.
13) Risk Management: The agency has an active risk management program in place to minimize its losses.
SCDOR is in compliance. The agency annually reviews operating areas to assess risks and exposures to minimize potential loss.