TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

Office of Audit

Highlights

Agency-wide shared services Implemented Corrective Actions Associated
With Prior Recommendations

 

Final Report issued on December 20, 2017

Highlights of Reference Number:  2018-10-009 to the Internal Revenue Service Chief Financial Officer.

IMPACT ON TAXPAYERS

As the primary overseer of all aspects of activity related to the Federal tax system, TIGTA conducts audits of IRS operations and controls, and makes recommendations for improvement.  Implementation of TIGTA recommendations can improve the efficiency and effectiveness of IRS operations and improve service to taxpayers.

WHY TIGTA DID THE AUDIT

This audit was initiated to determine whether selected prior TIGTA audit recommendations made to Agency-Wide Shared Services (AWSS) have been addressed and documented.

WHAT TIGTA FOUND

The majority of the AWSS corrective actions in response to selected prior TIGTA recommendations were completed properly.  Of the 25 corrective actions associated with the recommendations reviewed, 21 had been completed as reported by the AWSS, and the AWSS provided supporting documentation as required.  For example, AWSS offices completed risk assessments on several IRS facilities.  Many of the recommendations implemented were enhancements to physical security controls over IRS facilities and personnel.  The implementation of the recommendations and related control improvements should help the IRS to ensure the safety of its personnel and facilities.

Although the remaining four corrective actions were completed, the AWSS was unable to provide supporting documentation to substantiate that three corrective actions had been fully completed by the due date, and the AWSS completed one corrective action after the completion date it had reported in the corrective action tracking system.  For example, for one recommendation related to risk assessments for IRS facilities, the IRS agreed and closed the recommendation by stating it had updated its guidance.  However, TIGTA found that the IRS did not adequately implement the corrective action at the time the recommendation was closed.  Three months after the completion date, the IRS issued updated guidance which included language that addressed all of the recommendation’s requirements.

In another example, TIGTA recommended that the IRS provide acquisition personnel training on new regulation requirements.  The IRS completed the training but did not document details about the training at the time and could not provide supporting documents when TIGTA requested it because of the departure of the responsible IRS personnel.  According to IRS guidance, the AWSS should have closed the corrective actions after implementation was complete and retained supporting documentation of the actions taken.

WHAT TIGTA RECOMMENDED

TIGTA recommended that the Chief Financial Officer ensure that all required documentation to support closing corrective actions is retained for five years, as stated in IRS guidance.

In their response, IRS management agreed with our recommendation and stated that the IRS’s Office of Audit Coordination implemented a new policy requiring supporting documentation for all corrective actions, including those closed when management’s response is signed.

READ THE FULL REPORT

To view the report, including the scope, methodology, and full IRS response, go to:

https://www.treasury.gov/tigta/auditreports/2018reports/201810009fr.pdf.

 

Phone Number   /  202-622-6500

E-mail Address  /  TIGTACommunications@tigta.treas.gov

Website             /  https://www.treasury.gov/tigta