What Is the Annual Report?
The Annual Report provides a compendium to formally communicate with State and Federal administrators the findings, conclusions and recommendations derived from TPS reviews.  The report is based on the following information:

• Trends evidenced by Computed Measures
• Areas of strength and weakness in the State's system of internal controls
• Sampling results (which serve to assure that controls are in place and operating as intended)
• Any updates or recommendations on the tax system's operating methods.

The deadline for report submission to the Regional TPS liaison is May 31 of the following calendar year (CY).

An example of a TPS Annual Report is provided in Appendix D of the TPS Handbook.  Note that there is no mandatory format and the report can be modified to suit each State's needs.
 

HINT : As Computed Measures, Acceptance Samples, Systems Reviews, and Methods Surveys are conducted and completed, the TPS reviewer should prepare a written draft - well before the final Annual Report is due. Not only does this provide the findings of the review to the State decision maker in a timely manner, but it also helps the TPS reviewer from having to go back and reconstruct all that has taken place over many months time.

What Should the Report Contain?
Here are some suggestions on how the Annual Report can be structured.

1. Title Page and Table of Contents
2. Introduction
3. Section I:  Executive Summary
4. Section II:  Detailed Report For Each Tax Function:

• Computed Measures findings
• Program Review findings
  • Acceptance Sample results
  • Systems Review results
• Methods Survey results
• Program improvement recommendations

While the Executive Summary and Detailed Report refer to the same findings, there is a great difference in depth of detail.

Section I:  Executive Summary
This section should contain brief, general background information regarding the review year, as well as a summary of major findings, conclusions and recommendations, click here for some examples.  Support these facts with charts and graphs, encapsulating findings from sampling and Computed Measures. Click here for more examples.

The TPS Program Review Findings Chart was developed to capture and display the major findings on one page.  This chart could be included with the Executive Summary.

HINT: The purpose of the Executive Summary is to provide a short overview of major findings, conclusions and recommendations.  The Detailed Report for each tax function that follows is intended to provide more information.

Section II: Detailed Report for Each Function
This portion contains the bulk of TPS findings and should provide the following information, as appropriate, for each tax function.
 

• Computed Measures findings
• Program Review findings
  • Acceptance Sample results
  • Systems Review results
• Methods Survey results
• Program improvement recommendations

HINT: Each Detailed Report section should be able to stand on its own.  Ideally, it could be provided to each of the tax units under scrutiny and need no support from the rest of the Annual Report. Click on examples of Detailed Reports, Example 1, Example 2.

Here are some of the topics to be covered by each of these methodologies' findings.

Computed Measures Findings

• Describe what was measured.
• Examine the data to identify trends in the timeliness and completeness within that tax function.
• Cite several years’ worth of data when available.
• Compare the State's Computed Measures data with National figures, and Regional figures.
• Display Computed Measures results in clear charts or graphs. Here are some examples of States' Computed Measures, Example 1 Example 2.
• Factor in accuracy findings, based on TPS sampling results.
• Draw conclusions, discuss with State staff and prepare recommendations for improvement.

Acceptance Sample Findings

• Describe the Acceptance Sample results.
• Indicate whether any cases failed the sample and cite specifically why each case failed.
• Cite several years’ worth of findings when available.
• Compare the State's sampling results with National figures and Regional figures. (Data can be found in UI Performs reports.)
• Display Acceptance Sample results in the form of charts and graphs if possible. See this page for examples.
• Consider timeliness/completeness findings, based on Computed Measures.
• Begin to draw conclusions from Sample findings and factor in Systems Review results when preparing recommendations for improvement.

Systems Review Findings 

• Identify and describe any area where risk was found.
• Explain any inconsistencies between Systems Review and Acceptance Sample Findings.
• Draw conclusions from Systems Review findings and prepare recommendations for resolving any areas where risk has been identified.  If feasible, work in unison with State tax staff in developing recommendations for improvement.

HINT: While it is the responsibility of each reviewer to point out where there are risks in the State's system of controls checks and balances, the final arbiter of “quality” for TPS is whether the State passed or failed the sampling review.

Methods Survey Results

Gather information on  how each tax function is structured to deal with its primary tasks.
Contact the Regional liaison to learn what methods neighboring or similar States have in place.
Consider best practices when developing recommendations for program improvement.

Program Recommendations

A conclusions section could be developed where any systemic trends may appear in or interconnect with more than one tax function.  It would:

• Provide an update on any overarching program improvements made since the previous years’ TPS review.
• Identify the tax functions which have made significant improvements.
• Point out areas of strength or innovative approaches within the State.
• Describe additional findings outside the scope of the TPS review that are material to the proper payment of current and future tax revenues and/or Federal and State operations. Some examples are provided here.

Conclusion
This concludes the TPS tutorial.  Note that this tutorial supplements the TPS Handbook with a broad overview of the operating instructions.  Much more detail can be gathered from the Handbook. The tutorial, Handbook and Q&As are building blocks. For further information and support, TPS reviewers are strongly encouraged to contact their Regional Office and National Office colleagues.   A contact list is under development and will be available soon.