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APPLICATION FOR THE NATIONAL LEGISLATIVE PROGRAM EVALUATION SOCIETY 2018 EXCELLENCE IN EVALUATION AWARD COLORADO OFFICE OF THE STATE AUDITOR CALENDAR YEARS 2014–2017 Office of the State Auditor Dianne E. Ray, CPA State Auditor VIA EMAIL May 10, 2018 Jon Courtney New Mexico Legislative Finance Committee [email protected] Dale Carlson California State Auditor’s Office [email protected] Jennifer Sebren Mississippi Joint Legislative PEER Committee [email protected] Dear Judges: On behalf of the Colorado Office of the State Auditor, I am pleased to submit our application for the 2018 NLPES Excellence in Evaluation Award. We look forward to receiving the results of your review. Thank you for your time and consideration. Sincerely, Dianne E. Ray, CPA State Auditor We Set the Standard for Good Government State Services Building • 1525 Sherman Street, 7th Floor • Denver, Colorado 80203-1700 Phone: 303.869.2800 Office of the State Auditor Page 2 T ATTACHMENT A COLORADO OFFICE OF THE STATE AUDITOR ORGANIZATIONAL STRUCTURE COLORADO OFFICE OF THE STATE AUDITOR TOTAL PERFORMANCE AUDIT STAFF BY POSITION CALENDAR YEAR POSITION 2014 2015 2016 2017 State Auditor 1 1 1 1 Deputy State Auditor 1 1 1 1 Audit Manager 6 6 7 6 Audit Supervisor 8 8 8 8 Independent Contributor 0 0 2 3 Senior Auditor 6 8 6 11 Auditor 9 8 10 4 TOTAL PERFORMANCE AUDIT FTE 31 32 35 34 NOTE: Counts are filled positions as of December 31 each year. ATTACHMENT B COLORADO OFFICE OF THE STATE AUDITOR PERFORMANCE AUDITS BY YEAR CALENDAR YEARS 2014-2017 REPORT NAME OF REPORT RELEASE DATE NUMBER CALENDAR YEAR 2017 Automobile Inspection and Readjustment Program 1680P December 2017 Gaming Cities’ Use of Historical Fund 1682P December 2017 Distributions Cash Funds Uncommitted Reserves, Fiscal Year 1772P October 2017 Ended June 30, 2017 Schedule of TABOR Revenue, Fiscal Year 2017 1773P October 2017 Regional Tourism Act 1683P October 2017 State Land Board 1681P October 2017 Evaluation of Fort Lyon Supportive Residential 1671S September 2017 Community: Preliminary Report Audit of Three Information Technology Systems at the Colorado Department of Public Health and 1676P September 2017 Environment Public Administrators 1678P September 2017 Colorado Health Benefits Exchange: Connect for 1675P July 2017 Health Colorado Investments in Colorado’s Great Outdoors 1621P July 2017 Annual Compensation Study 1674P June 2017 Cash Funds Uncommitted Reserves, Fiscal Year 1672P June 2017 Ended June 30, 2016 Office of Film, Television, and Media 1670P June 2017 Adams State University 1665P-B February 2017 Western State Colorado University 1665P-A February 2017 Colorado Energy Office Follow Up to 2012 Audit 1663P January 2017 CALENDAR YEAR 2016 Commuting Use of State-Owned Vehicles 1560P December 2016 Conservation Easement Tax Credit Program, After 1561P December 2016 Changes in 2014 Schedule of TABOR Revenue, Fiscal Year 2016 1673P December 2016 Behavioral Health Programs 1556P December 2016 Division of Youth Corrections 1557P October 2016 Study of Volunteer Firefighter Pension Plans in 1550P October 2016 Colorado Colorado Medicaid: The PEAK Application and 1555P August 2016 Eligibility Verification Contracting for Services – Selection Process 1551P August 2016 COLORADO OFFICE OF THE STATE AUDITOR PERFORMANCE AUDITS BY YEAR CALENDAR YEARS 2014-2017 REPORT NAME OF REPORT RELEASE DATE NUMBER Audit of the Information Security of the Colorado 1549P June 2016 Operations Resource (CORE) System Independent Ethics Commission 1553P March 2016 Cash Funds Uncommitted Reserves, Fiscal Year 1552P February 2016 Ended June 30, 2015 Immunization Program – Use of Tobacco 1417P January 2016 Settlement Funds CALENDAR YEAR 2015 Conveyance Program 1502P December 2015 Department of State 1503P December 2015 Local Sales Taxes *Recipient of the National Legislative Program 1422P December 2015 Evaluation Society 2016 Excellence in Research Methods Colorado Public Employees’ Retirement Association (PERA) Hybrid Defined Benefit Plan 1416P October 2015 Actuarial Assumptions Sensitivity Analysis Regional Transportation District Bus and Light 1421P October 2015 Rail Train Operator Safety Schedule of TABOR Revenue, Fiscal Year 2015 1548P October 2015 Gaming Impact Grants 1419P September 2015 Collection and Usage of the FASTER Motor Vehicle Fees 1410P August 2015 *Recipient of the National Legislative Program Evaluation Society 2017 Certificate of Impact Senior and Disabled Veteran Property Tax Exemption Program 1412P August 2015 *Recipient of the National Legislative Program Evaluation Society 2016 Certificate of Impact Colorado Public Employees’ Retirement Association (PERA) Hybrid Defined Benefit Plan 1409P July 2015 Study Pet Animal Care Facilities Act Program 1418P July 2015 Consumer-Directed Attendant Support Services 1413P June 2015 Medicaid Prescription Drugs 1407P June 2015 Cash Funds Uncommitted Reserves, Fiscal Year 1411P March 2015 Ended June 30, 2014 U.S. 36 Public-Private Partnership (P3) Project 1415P March 2015 Colorado Correctional Industries 1350P January 2015 COLORADO OFFICE OF THE STATE AUDITOR PERFORMANCE AUDITS BY YEAR CALENDAR YEARS 2014-2017 REPORT NAME OF REPORT RELEASE DATE NUMBER CALENDAR YEAR 2014 Colorado Health Insurance Benefits Exchange: 1348P December 2014 Connect for Health Colorado IT Vulnerability Assessment 1404P December 2014 State Energy Program 1346P December 2014 Child Welfare 1303P November 2014 Schedule of TABOR Revenue, Fiscal Year 2014 1406P November 2014 Systems Backup and Recovery 1403P November 2014 Child Welfare Workload Study 1354S August 2014 Medication Management for Committed Youth At 1351P August 2014 Division of Youth Correction Facilities Child Protection Ombudsman Program 1345P July 2014 History Colorado *Recipient of the National Legislative Program 1405P July 2014 Evaluation Society 2015 Certificate of Impact Waste Tire Processor and End User Program 1341P July 2014 Dam Safety Program 1347P June 2014 Veterans Trust Fund Grant Program 1340P June 2014 Victim’s Restitution 2197P June 2014 Cash Funds Uncommitted Reserves, Fiscal Year 1344P February 2014 Ended June 30, 2013 School Meal Program 1302P January 2014 Electronic copies of all reports can be accessed via the OSA’s webpage: www.colorado.gov/auditor Note: The date listed signifies when the final report was publicly released by the Legislative Audit Committee and does not necessarily match the date listed on the report cover. ATTACHMENT C DEPARTMENT OF LOCAL AFFAIRS SENIOR AND DISABLED VETERAN PROPERTY TAX EXEMPTION PROGRAM AUGUST 2015 PERFORMANCE AUDIT THE MISSION OF THE OFFICE OF THE STATE AUDITOR IS TO IMPROVE GOVERNMENT FOR THE PEOPLE OF COLORADO LEGISLATIVE AUDIT COMMITTEE Senator Lucia Guzman – Chair Representative Dan Nordberg – Vice-Chair Senator Chris Holbert Representative Dianne Primavera Senator Cheri Jahn Representative Su Ryden Senator Tim Neville Representative Lori Saine OFFICE OF THE STATE AUDITOR Dianne E. Ray State Auditor Monica Bowers Deputy State Auditor Andy Knauer Audit Manager Jason LeBlanc Staff Auditors James Stout AN ELECTRONIC VERSION OF THIS REPORT IS AVAILABLE AT WWW.STATE.CO.US/AUDITOR A BOUND REPORT MAY BE OBTAINED BY CALLING THE OFFICE OF THE STATE AUDITOR 303.869.2800 PLEASE REFER TO REPORT NUMBER 1412P WHEN REQUESTING THIS REPORT OFFICE OF THE STATE AUDITOR DIANNE E. RAY, CPA August 11, 2015 —— STATE AUDITOR Members of the Legislative Audit Committee: This report contains the results of a performance audit of the Senior and Disabled Veteran Property Tax Exemption Program. This audit was conducted pursuant to Section 39-3-208, C.R.S., which states the “state auditor shall periodically audit the property tax exemption program to ensure that the program is operating in compliance with Section 3.5 of Article X of the state constitution and this part 2 [of Title 39, Article 3 of the Colorado Revised Statutes].” The statute also states that “the state auditor may suggest means of improving the administration of the program.” This report presents our findings, conclusions, and recommendations, and the responses of the Department of Local Affairs. OFFICE OF THE STATE AUDITOR 1525 SHERMAN STREET 7TH FLOOR DENVER, COLORADO 80203 303.869.2800 CONTENTS Report Highlights 1 Recommendation Locator 3 CHAPTER 1 OVERVIEW 5 Eligibility 6 Program Administration 7 Fiscal Overview 10 Audit Purpose, Scope & Methodology 11 CHAPTER 2 PROGRAM EFFECTIVENESS 13 County Eligibility Determinations 15 Program Design 26 Review for Multiple Applications 27 Data Validation 33 Reimbursements Without State-Level Review 37 REPORT HIGHLIGHTS SENIOR AND DISABLED VETERAN PROPERTY TAX EXEMPTION PROGRAM DEPARTMENT OF PERFORMANCE AUDIT, AUGUST 2015 LOCAL AFFAIRS CONCERN The fundamental design of the Senior and Disabled Veteran Property Tax Exemption Program (Program) does not sufficiently protect the State from reimbursing counties for non-qualifying exemptions and, within the current Program design, the Department of Local Affairs (DOLA) lacks authority and processes to ensure that only qualifying applicants are approved. KEY FACTS AND FINDINGS BACKGROUND . State general funds are used to reimburse counties for tax . In 2000 and 2006, voters approved amendments exemptions granted to property owners. to the Colorado Constitution establishing . In Fiscal Year 2015, the State reimbursed counties almost $117 property tax exemptions for qualifying senior million for 211,692 senior and disabled veteran property tax citizens and disabled veterans. exemptions. To qualify for the exemptions, seniors must be
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