Louisiana Legislative Auditor

Using Data to Evaluate and Improve PerformanceGina Brown, Performance Audit Manager

Melissa Barbato, Senior Performance Auditor 2

October 3, 2013

Data is a Management Tool

Using data as a management tool is key to improving programs

“You can have data without information, but you cannot

have information without data.”

Sources: Daniel Keys Moran (BrainyQuote.com)

What Do We Do With Data?

• Study it, find patterns, make improvements• A few of our examples:

1. Department of Health and Hospitals, Office of Public Health – Regulation of Food Safety in Retail Food Establishments

2. Supplemental Nutrition Assistance Program, Department of Children and Family Services

3. Louisiana Tax Commission – Residential Property Tax Assessments

OPH Retail Food Audit

• Issued November 2012

• Permits, inspections, enforcement

OPH Retail Food Audit: Permits

• Critical violations may directly contribute to food contamination or illness– Examples: no water, poor employee hygiene

• Non-critical violations are not directly related to the cause of foodborne illness, but if left uncorrected, could become critical– Example: no soap and paper towels in restroom

Types of violations:

OPH Retail Food Audit: Permits

• OPH issued permits to four (13%) out of 30 restaurants with critical violations

• OPH issued permits to 40 (33%) out of 122 restaurants with non-critical violations

Pre-opening inspections and permits:

Recommendation: Ensure that permits are not issued with uncorrected violations

OPH Retail Food Audit: Inspections

Inspections and re-inspections:High-Risk Establishment Inspections

Fiscal Years 2009-2011

81% high-risk establishments not inspected 4x/yrSource: Prepared by legislative auditor’s staff

OPH Retail Food Audit: Inspections

• OPH did not conduct 32% of required re-inspections to ensure critical violations were corrected

Inspections and re-inspections:

Recommendations:• Inspect high-risk establishments in accordance with

criteria• Conduct re-inspections timely

OPH Retail Food Audit: Inspections

• OPH estimated 3,140 inspections were not uploaded

Disclosure of inspection results: www.eatsafe.la.gov

Recommendations:• Ensure that all inspections are uploaded timely• Grade/score restaurants, or post inspection results on-site

• Website did not contain all inspections for restaurants

OPH Retail Food Audit: Enforcement

Violations rarely addressed:Restaurants with Most Violations

Regions 1, 2, and 4FY 09-11

Name Region Parish Total Violations

# and % Critical

Mandarin House 1 Jefferson 282 88 (31.2%)

Super China Buffet 1 Jefferson 233 81 (34.8%)

The Great Wall Restaurant 2 EBR 345 76 (22.0%)

King Buffet 2 EBR 220 59 (26.8%)

Royal Panda Chinese Restaurant 4 Lafayette 687 133 (19.4%)

Charlies Seafood Restaurant 4 Lafayette 566 102 (18.0%)Source: Prepared by legislative auditor’s staff using data from AIRS.

OPH Retail Food Audit: Enforcement

• Nearly 450,000 violations statewide, FYs 2009-2011

Violations rarely addressed:

• Four compliance orders

• Penalties assessed: $1,300

• 33% of restaurants statewide had repeat critical violations from FY 2010 to 2011

• Penalties collected: $0

OPH Retail Food Audit: Enforcement

• Improve use of enforcement

• Streamline compliance order process

• Develop consequences for repeat critical violations

• Consider charging a re-inspection fee

Recommendations:

SNAP Audit

• Issued May 2013

• Formerly referred to as “food stamps”

• Federal role vs. state role• Topics include participant eligibility and

potential fraud

SNAP Audit

Data analysis results include:• 84 drug felons - over $100,000 in benefits, FY 11-12

• 154 instances, approximately $10,000 - benefits redeemed in Louisiana and a non-neighboring state within the same hour

• 1,761 incarcerated participants – approximately $1.1 million in benefits, FY 11-12

SNAP Audit

Recommendations:

• Ensure prison information verification is reliable, consistent, and timely

• Enhance use of data analytics and data mining

Data is a Management Tool

Using data as a management tool is

key to improving programs

Sources: Daniel Keys Moran (BrainyQuote.com)

Louisiana Tax Commission (LTC)Audit Report Issued July 2013

LTC: Audit Objective

Does LTC’s oversight of parish tax assessors ensure that residential property tax

assessments are accurate?

LTC

We used data to analyze the following:

1. Accuracy of assessments2. Number assessment changes LTC

approved3. Property reassessments 4. Multiple homestead exemptions

LTC

• Important Data Fact– For this audit, we used data LTC already had

• Why is this important?–We were able to provide quick and easy

evaluation methods for LTC to use to improve its oversight of parish tax assessors.

LTC: Accuracy of Assessments

Analyzing LTC’s data, we found:

2,568 (39%) of the 6,551 residential properties in LTC’s most recent Ratio Study were not assessed at 10% of fair market value, as required by the Constitution

Finding: LTC did not follow up with the parish tax assessors on these properties

LTC: Accuracy of Assessments

• Also using LTC’s data, we found that properties in the same neighborhood, with similar fair market values, had significant differences in the assessed values of their homes.

• This resulted in some homeowners owing significantly more in property taxes than their neighbors.

LTC-Property owner A owes 246% more in property taxes than property owner B

Property A Living Area: 2,848 square feet

LTC’s Fair Market Value: $569,600Assessor’s Assessed Value: $65,000Percent of Fair Market Value: 11.4%

2011 Taxes Due: $8,564.372012 Taxes Due: $8,534.47

Property B Living Area: 2,812 square feet

LTC’s Fair Market Value: $562,400Assessor’s Assessed Value: $23,760Percent of Fair Market Value: 4.2%

2011 Taxes Due: $2,478.182012 Taxes Due: $2,469.72

         

LTC-Property owner C owes 249% more in 2012 property taxes than property owner D

Property CLiving Area: 1,370 square feet

LTC’s Fair Market Value: $209,610Assessor’s Assessed Value: $20,500Percent of Fair Market Value: 9.8%

2011 Taxes Due: $1,368.802012 Taxes Due: $1,462.25

Property DLiving Area: 1,298 square feet

LTC’s Fair Market Value: $198,594Assessor’s Assessed Value: $11,300Percent of Fair Market Value: 5.7%

2011 Taxes Due: $400.112012 Taxes Due: $418.44

 

LTC: Accuracy of Assessments, Conclusion

Using Data to Improve Performance: We analyzed LTC’s data differently from how LTC staff analyzes the data to determine how the oversight of parish tax assessors could be improved.

LTC: Assessment Changes

Analyzing LTC’s data we found:

LTC approved over $118 million in assessment decreases for 20,822 businesses and residential properties from calendar years 2010 through 2012 without determining the accuracy of the new assessments.

LTC: Assessment Changes

Using Data to Improve Performance: Using this data, LTC should develop a risk-based process to ensure the proposed assessed values submitted by the parish tax assessors on change orders are accurate before making a recommendation to approve or deny the requests.

LTC: Property Reassessments

Analyzing parish tax roll data, we found:

130,212 (21%) of the 620,310 residential properties from the 33 parishes in our sample had the same fair market value in 2012 as in 2007.

Finding: LTC does not ensure that parish tax assessors reappraise residential properties every four years.

LTC: Property ReassessmentsTop 10 Parishes

Residential Properties with No Change in Fair Market Value Calendar Years 2007 and 2012

Parish

Total Properties

Properties with No Change in Market Value

Number of Properties Percent

1. Madison 3,085 2,368 76.8%2. Ouachita 43,044 28,325 65.8%3. Ascension 25,425 16,272 64.0%4. Claiborne 5,022 3,169 63.1%5. De Soto 6,857 4,222 61.6%6. Red River 472 252 53.4%7. Tensas 3,152 1,636 51.9%8. Jackson 5,143 2,607 50.7%9. Rapides 31,675 15,134 47.8%10. Allen 6,153 1,698 27.6%Source: Prepared by legislative auditor’s staff using parish tax roll data.

LTC: Property Reassessments, Conclusion

Using Data to Improve Performance: LTC could use information such as this as a starting point to identify and investigate parish assessors that may not be reappraising properties every four years.

LTC: Homestead Exemptions

Analyzing parish tax roll data, we identified:

Identified 1,304 instances of individuals with multiple homestead exemptions that added up to more than $7,500 resulting in $207,974 in potential lost tax revenue during calendar years 2011 and 2012.

Louisiana Constitution provides that a resident’s homestead exemption should not be greater than $7,500 of the assessed value or on more than one residence.

LTC: Homestead Exemption, Conclusion

• Using Data to Improve Performance: We realized our results were not comprehensive by just using name and address.

• As a result, we recommended that LTC determine the feasibility of collecting a unique identifier for tax payers who receive a homestead exemption in order to use data for more comprehensive results.

LTC Overall Conclusion `

Using LTC’s data, we were able to make reasonable recommendations to improve LTC’s oversight of parish

tax assessors.

Conclusions

Cautions to keep in mind when using data:

• It can be difficult and time-consuming to obtain

• It may not be reliable

• It may not always tell the full story without program context

Discussion Questions

• Questions about our three audits?

• What are some programs you’d like to evaluate and improve?

• How would you start?

Thank You!

For these reports (and others), visit www.lla.la.gov