Improvements Are Needed in the Telecommunications Data Network Management Program

 

November 2001

 

Reference Number:  2002-20-026

 

This report has cleared the Treasury Inspector General for Tax Administration (TIGTA) disclosure review process and information determined to be restricted from public release has been redacted from this document.

 

November 30, 2001

 

 

MEMORANDUM FOR DEPUTY COMMISSIONER FOR MODERNIZATION & CHIEF INFORMATION OFFICER

 

FROM:     Pamela J. Gardiner /s/ Pamela J. Gardiner

                 Deputy Inspector General for Audit

 

SUBJECT:     Final Audit Report - Improvements Are Needed in the Telecommunications Data Network Management Program            (#200120007)

 

This report presents the results of our review of telecommunications data network management and capacity planning.  The overall objective of the audit was to determine whether the Internal Revenue Service (IRS) Information Technology Services (ITS) organization effectively implemented telecommunications data network capacity and performance management policies and procedures. 

 

The ITS Telecommunications Division is responsible for purchasing, operating, and maintaining networks for more than 100,000 employees in over 750 locations.  Several actions have been initiated to accomplish the strategic goal of improving the IRS ability to manage telecommunications services.  These actions include upgrading telecommunications technology, developing network performance measures, and initiating service level agreements defining the network performance to be provided to users.  Additional actions in the following areas would further improve the network management program.

 

Network management policies and procedures do not provide defined network monitoring responsibilities.  As a result, duplicative monitoring activities may be costing the IRS about $1 million a year.  Additional network management program weaknesses include network monitoring tools that cannot access all wide area network equipment, the lack of defined network problem resolution timeliness standards, and the lack of periodic identification of recurring network problems.  Also, network traffic is not proactively analyzed to optimize network performance.  For example, about 10 percent of the traffic routed through the Internet firewall, such as Internet advertisements, could be eliminated. Improving network management efforts would ensure the IRS effectively uses resources and maintains a reliable network that meets users’ needs.

 

IRS policies and procedures do not require network capacity planning and the use of analytical modeling techniques when planning major network changes that could affect current network capacity and performance.  Due to ineffective network capacity planning efforts, network traffic volumes on 12 of 306 upgraded circuits used less than 10 percent of the circuits’ capacity, and 37 upgraded circuits that cost approximately $1.9 million to install were disconnected after being used for only 1 to 11 months.

 

In addition, change management procedures designed to maintain network integrity and security were not followed.  During September through November 2000, 14 of 28 Change Management Tracking System (CMTS) records did not include documented management approval and/or test results, and all 132 Treasury Communications System (TCS) service requests were not documented on the CMTS as required. Also, change management computer software was not implemented to enhance oversight procedures.

 

Management’s Response:  IRS management agreed with the recommendations presented in the report.  Corrective actions taken and planned will improve network monitoring and performance, capacity planning, and change management procedures.  Management’s complete response to the draft report is included as Appendix V.

 

Copies of this report are also being sent to the IRS managers who are affected by the report recommendations.  Please contact me at (202) 622-6510 if you have questions or Scott Wilson, Assistant Inspector General for Audit (Information Systems Programs), at (202) 622-8510.

Table of Contents

Background

Actions Were Initiated to Accomplish the Telecommunications Strategic Goal

Network Management Efforts Could Be Improved

Recommendations 1 through 4:

Recommendations 5 through 7:

Network Capacity Planning Could Be Improved

Recommendation 8:

Recommendation 9:

Change Management Controls Should Be Enforced

Recommendations 10 and 11:

Appendix I – Detailed Objective, Scope, and Methodology

Appendix II – Major Contributors To This Report

Appendix III – Report Distribution List

Appendix IV – Outcome Measures

Appendix V – Management’s Response to the Draft Report

Background

The Fiscal Year (FY) 2001 – 2002 Internal Revenue Service (IRS) Information Technology Services (ITS) Strategy and Program Plan includes a strategy to “Improve IRS’ Ability to Manage Telecommunications Services.”  To accomplish the strategy, the ITS function plans to leverage technology, implement organizational change, adopt best practices, and invest in its employees.

The ITS Telecommunications Division had a $139 million FY 2001 budget to provide data services to more than 100,000 employees in over 750 locations.  The Telecommunications Division will pay Treasury Communications System (TCS) contractors $80 million (58 percent of the data services budget) for Wide Area Network (WAN) operations and maintenance services.  Approximately $59 million will be spent on Department of the Treasury and TCS fees, services, and Program Management Office (PMO) support; the IRS National Network Management Center (NMC) contractor support; the purchase and maintenance of IRS-owned data network equipment; and other costs.

The Telecommunications Division organizations with network responsibilities include:

·        The WAN Office – Purchases and installs WAN circuits and equipment.

·        The National NMC – Monitors, troubleshoots, and tests the WAN.

·        The Telecommunications Engineering and Project Management Office – Designs network changes and develops performance measures.

In addition, computing center, IRS center, and area office ITS employees monitor, troubleshoot, and test the WAN and Local Area Networks (LAN) to assure network availability. These employees currently are assigned to the Corporate Computing, Service Center Operations, and Desktop Management offices.

The International Organization for Standardization (ISO) established information technology standards that apply to data communication networks.  Telecommunications management informed us that they are working to achieve key network management functions recommended by the ISO, including:

·        Fault management – Monitoring and controlling the network to ensure that a problem in one location does not disable the remainder of the network.

·        Configuration management – Controlling network changes to ensure that all changes are authorized.

·        Performance management – Monitoring and controlling the network to meet the users’ quality of service needs (i.e., timeliness, availability, and reliability).

Audit work was conducted in the ITS National Headquarters; Martinsburg Computing Center (MCC); Tennessee Computing Center (TCC); Atlanta, Austin, and Memphis IRS Centers; and Midstates and Southeast Area Offices during November 2000 through July 2001.  This audit was scheduled as part of the Treasury Inspector General for Tax Administration’s (TIGTA) Annual Audit Plan and performed in accordance with Government Auditing Standards.  Detailed information on our audit objective, scope, and methodology is presented in Appendix I.  Major contributors to the report are listed in Appendix II.

Actions Were Initiated to Accomplish the Telecommunications Strategic Goal

Telecommunications management recognized that accomplishment of the strategic goal to improve the IRS’ ability to manage telecommunications services required improvements in network performance and management.  The actions initiated to improve the network include:

·        Replacing older WAN circuits with current technology and redesigning the WAN configuration to increase capacity, and improve network management, problem resolution, and performance.

·        Developing network performance measures that support the IRS’ Balanced Measures.

·        Initiating development of service level agreements with IRS business units that will document the network service levels that users will be provided.

·        Developing the Enterprise Help Desk, a new system that should improve network problem reporting.

Network Management Efforts Could Be Improved

Additional management actions in the following areas would further improve the network management program.

Office of Management and Budget (OMB) Circular A-130, Management of Federal Information Resources, requires management to ensure that networks are cost effective.  The OMB Circular also requires management to record and maintain sufficient information to ensure management and accountability of programs and to protect the IRS’ legal and financial rights. The ISO standards state that the fault management function includes reacting to and correcting problems as soon as possible to minimize the impact on the entire network.  The performance management function includes monitoring and controlling the network to meet the timeliness, availability, and reliability requirements of users.

The IRS has not implemented nationwide policies and procedures for network monitoring responsibilities, established problem resolution timeliness standards, and documented traffic and performance analyses. Management advised us that these policies and procedures were not implemented because their immediate priority was upgrading the network infrastructure and completing the ITS reorganization.  Increased management attention to the following areas would improve network management effectiveness and allow staff resources to be assigned to work that is more productive.

Network monitoring efforts are duplicated and network monitoring tools cannot access all equipment

Current network monitoring procedures do not establish nationwide network monitoring responsibilities, resulting in duplicate network monitoring and the inability of network management tools to electronically access all WAN equipment.

·        The NMC, MCC, and TCC network monitoring operations are staffed around the clock and monitor the network to identify problems. Twenty-nine MCC and TCC Telecommunications Specialists (IRS employees) and 20 NMC Network Engineers (IRS contractors) monitor the WAN and troubleshoot and report problems.  Review of the IRS employees’ and contractors’ duties showed that 22 of the 29 MCC and TCC employees’ duties duplicated the NMC Network Engineers’ duties. By eliminating the overlapping duties, management could reassign the 22 employees to other duties resulting in $4.8 million in resources being put to better use over 5 years (see Appendix IV for details on our calculation of the cost).

Management stated that the NMC is going to be moved to a computing center.  The Telecommunications Division has recently assembled a team of managers that is looking at various alternatives for this move including the possibility of implementing a distributed network monitoring process.  In addition, the IRS’ systems modernization and consolidations at the MCC and TCC have increased their network responsibilities.

·        MCC and TCC employees and NMC and TCS contractors use similar electronic tools to monitor the WAN. These electronic tools identify each circuit and piece of equipment that makes up the network and monitor the network to detect problems (e.g., interrupted service and slow response times). The accuracy and completeness of this information is critical because employees and contractors review the problem alerts generated by the tools and network diagrams to troubleshoot problems and determine the appropriate corrective actions.

However, the NMC and TCS tools could not electronically access all WAN circuits and equipment.  NMC employees explained that their access was limited because employees in local IRS offices had not shared with them the network equipment access codes.

As of March 2001, the TCS contractor had completed 10 network diagrams for 2 of the 8 offices selected for the audit.  The diagrams identified 137 WAN circuits but did not provide all of the information (e.g., destination names) needed to manage 46 of the circuits. Telecommunications management subsequently advised us that NMC engineers completed detailed network diagrams for approximately 90 percent of the WAN, but their tools’ access to the remaining network equipment is still limited.  Problems that occur after local office business hours in locations that cannot be monitored by the NMC and TCS contractors may not be identified promptly, which could delay resolution and prevent employees from conducting their work when they return the following day.

Network problem resolution timeliness standards have not been defined and incorporated into the status reporting process

Network problems are resolved by TCS and NMC contractors and IRS employees.  The TCS contract defines performance standards, including various time periods for restoring interrupted service, and the TCS contractor is required to design, implement, operate, and maintain the network to meet the standards selected by the bureaus (e.g., IRS). However, the IRS has not established problem resolution timeliness standards for the TCS contractor and the IRS employees and NMC contractors who resolve problems.

The TCS contract minimum standard requires the contractor to restore interrupted service within 8 business hours (or 1 business day).  The minimum TCS standard was applied in a review of 91 problem tickets randomly selected from the 457 problem tickets recorded on the NMC’s Log Management System (LMS) between September and November 2000. The results of the review show that improvements are needed to more timely resolve network problems (see Table 1).

Table 1: Timeliness of Network Problem Resolution (in Business Days)

Problem Resolved By:

0 – 1

1 - 2

2 - 5

Over 5

CND

Total

TCS

55

11

7

4

1

78

IRS and NMC

7

2

0

2

2

13

Source:  Sample of 91 of 457 problem tickets recorded on the LMS between September and November 2000.

Note:  CND (Could Not Determine) - Three problem tickets and the associated documentation did not show the resolution dates and times.

NMC procedures require contractors to prepare daily Network Event Status Reports for Telecommunications management that include all unresolved and recently resolved network circuit problems.  Management advised us that they discuss unresolved problems identified in the status reports with the Department of the Treasury TCS PMO and contractors in monthly meetings.  The 91 sampled problem tickets were also reviewed to determine whether the problems were reported in the daily Network Event Status Reports.  The review found that improvements are needed to ensure problems are reported in the Network Event Status Reports (see Table 2).

Table 2: Problems Not Reported in the Network Event Status Reports

Problem Resolved by:

Problems Not in Status Reports

Total Problems Reviewed

TCS

41

78

IRS and NMC

4

13

Source:  Sample of 91 of 457 problem tickets recorded on the LMS and Network Event Status Reports between September and November 2000.

Timely resolution of network problems is important to ensure the network remains operational and meets the needs of users.  Also, accurately preparing status reports assures management is aware of network problems, has the necessary information to assign the appropriate resources to address the problems, and has complete information when meeting with the PMO and contractors.

Analyses of recurring network problems are not periodically performed

Telecommunications management advised us that they analyze problem tickets to identify circuits with recurring problems (i.e., two or more problems occurring in a short period of time), which helps them ensure that recurring problems are properly resolved. However, management provided documentation of only one IRS analysis of recurring problems, dated September 2000, that was submitted to the PMO.

The analysis listed nine circuits with recurring problems, and the PMO subsequently reported back to Telecommunications management that a TCS contractor was working on one chronic circuit (a circuit that has four or more problems in the month) and would continue to monitor three others.  In addition, the TCS contractor prepares monthly TCS Trouble Ticket System (TTS) Reports that identify chronic problems, but the TTS Reports were not timely received by the IRS.  As of July 2001, the TTS report dated September 2000 (covering problems that occurred in August 2000) was the most recent report that the IRS received.

Periodic IRS analyses would have identified additional circuits with recurring problems.  A review of the 457 problem tickets recorded on the LMS between September and November 2000 identified 40 circuits with 2 to 5 problems that occurred after the September 2000 IRS analysis, including:

·        One circuit with 5 problems reported in 28 days.

·        One circuit with 4 problems reported in 12 days.

NMC procedures do not require periodic analysis of network problems.  However, effective network performance management should incorporate periodic problem analyses to ensure the network is available and reliable in meeting users needs.

Network traffic is not analyzed to identify optimization opportunities

Telecommunications management has not issued policies and procedures requiring periodic analysis of network traffic to identify optimization opportunities.  If network traffic is reviewed and results shared with other organizations that could resolve the identified problems, network performance could be improved.

For example, our analysis of the IRS Internet firewall audit logs for September through November 2000 identified unnecessary traffic that wasted network resources, including:

·        Internet advertisements that accounted for 123 billion of 1,449 billion bytes (8 percent) of traffic through the firewall. In response to this analysis, the Telecommunications Division began implementing controls that block Internet advertisements.  Management’s action will conserve network resources and result in improved network response times.

·        Misrouted IRS Intranet traffic (e.g., traffic with sources and destinations on the IRS internal network was routed through the external Internet firewall) that accounted for 25 billion of 1,449 billion bytes (2 percent) of traffic through the firewall.  The vast majority of the sources appear to be IRS employees’ workstations.  However, the sources for 19 percent of the misrouted traffic were 5 network devices, including 3 proxy servers used to route users’ traffic to the correct destination address.

Periodic traffic analysis by Telecommunications Division personnel may also identify other low-cost opportunities to further improve the network’s effectiveness.  Although Telecommunications management advised us that they are not responsible for the settings on systems and desktop computers connected to the network, they are responsible for the efficiency of the network and communicating the results of proactive analyses to the organizations that are responsible for the equipment.  By sharing pertinent information and taking necessary corrective action, network resources could be conserved and network response times improved.

Recommendations

The Deputy Commissioner for Modernization & Chief Information Officer should:

1.             Establish WAN monitoring responsibilities that eliminate duplicate monitoring efforts and reassign employees displaced by revised network monitoring responsibilities to more productive work.

Management’s Response:  Management plans to review IRS network management capabilities and implement the necessary organizational, contractual, and procedural changes to complete realignment of responsibilities and functions.

2.             Issue instructions to ensure network monitoring tools can electronically access all WAN equipment.

Management’s Response:  Management plans to complete the deployment and refinement of the network management tools.

3.             Define problem resolution timeliness standards for telecommunications contractors and employees and monitor the resolution of reported problems.

Management’s Response:  Management plans to review the problem identification process and align it with industry best practices.  A procedural guide will be developed to assist network monitors to determine the severity of an outage.  The guide will also assist in providing network restoration timelines.  Furthermore, management will establish a process to periodically review trouble handling.

4.             Incorporate problem resolution timeliness standards into the Network Event Status Report and ensure all problems are included in the daily status report.

Management’s Response:  Management plans to continue to work with the Department of the Treasury and the TCS vendor to assess problem resolution responsiveness and timeliness. Also, management plans to use the Enterprise Help Desk and the Information Technology Asset Management System (ITAMS) network problem reporting and tracking procedures to improve problem resolution.  Furthermore, network outages will be documented and compared to Service Level Agreement standards currently being developed.

5.             Conduct and document monthly network problem analyses to identify recurring problems.

Management’s Response:  The Telecommunications Division established a monthly forum with the Department of the Treasury and TCS vendors to discuss network management issues, including chronic network problems.  Management also plans to partner with the Department of the Treasury and TCS vendors to analyze and resolve root causes for repetitive problems.

6.             Complete efforts to block Internet advertising.

Management’s Response:  The Telecommunications Division prepared a plan to filter Internet traffic and block Internet advertisements.  Management is also working to procure the needed hardware and software.

7.             Require periodic network traffic analyses and initiate corrective actions or communicate the results with responsible organizations.

Management’s Response:  The Telecommunications Division is establishing a capacity planning staff and working with the Business System Modernization Program Office (BSMO) to use an analytical modeling tool to baseline the current network and assist in periodically analyzing network traffic.

Network Capacity Planning Could Be Improved

The Treasury Information Technology Manual, TD P 81-10, requires bureaus (e.g., the IRS) to implement planning processes that ensure investments reduce costs and improve the effectiveness of work processes.  Analytical modeling is a capacity planning technique that uses historic network performance data and future requirements to simulate the proposed network changes and estimate their impact on network performance. IRS policies and procedures do not require network capacity planning and the use of analytical modeling techniques when planning major network changes that could affect current network capacity and performance.

The IRS purchased analytical modeling computer software and a Business Systems Modernization contractor is using it to help determine the future network capacity changes needed for the IRS’ future tax processing and compliance systems.  However, the ITS function has systems development initiatives, such as the Tier II Consolidation Project and the National Print Strategy, that will significantly change current network traffic volumes and patterns and analytical modeling techniques were not being used.  These modeling techniques were not being used by the ITS function because management had not allocated resources to train Telecommunications engineers or hired contractors with the required skills.  Telecommunications management advised that, in May 2001, they started using modeling techniques to plan network changes for the employee travel reporting system that is part of the Tier II Consolidation Project.

Weekly TCS circuit performance reports were analyzed to evaluate the effectiveness of capacity planning.  Analysis of the peak traffic volume reports for February 2001 showed that some upgraded circuits and associated ports might have been sized incorrectly.  Specifically:

·        Twelve of 306 WAN circuits never used more than 10 percent of the available capacity during the entire month; a pattern indicating the circuits might be oversized.  Of these 12 circuits, 10 connected computing centers and IRS centers with each other or large offices.

·        Sixteen of 68 ports discarded traffic on 2 or more occasions during the month when the network traffic exceeded the ports’ capacity, a pattern indicating that the ports might be undersized.  As a result, users could experience screen errors or slow response times.

In addition, the WAN circuit inventory identified 37 circuits that were upgraded to current technology between January and November 2000 at a cost of approximately $1.9 million.  These circuits were disconnected in December 2000, after being used for only 1 to 11 months, when the IRS reconfigured the WAN (see Appendix IV for details on our calculation of the total installation costs). Telecommunications management informed us that this sequence of events occurred because TCS contractors did not complete their work timely and the IRS placed a moratorium on network changes during the tax filing season.  However, improved network capacity planning may have prevented the purchase of circuits that were abandoned within a year after installation.

By not having policies and procedures requiring network capacity planning and the use of analytical modeling techniques, the IRS is at risk of wasting resources and building a network that does not meet users’ needs.

Recommendations

The Deputy Commissioner for Modernization & Chief Information Officer should:

8.             Issue and implement capacity planning policies and procedures for major network changes.

Management’s Response:  The Telecommunications Division is establishing a capacity planning staff and developing a capacity planning policy and procedural guide for performing quarterly capacity planning studies.  The Telecommunications Division is also working with the BSMO to use an analytical modeling tool to baseline the current network and assist in the required capacity planning work.

9.             Ensure analytical modeling techniques are incorporated into network and system development planning methodologies.

Management’s Response:  The Telecommunications Division is establishing a capacity planning staff to use the modeling techniques and is working with the BSMO to use an analytical modeling tool to baseline the current network and assist in the capacity planning and modeling effort.

Change Management Controls Should Be Enforced

The IRS’ WAN is used to access taxpayer accounts and to transmit tax return and payment information among the many IRS locations.  The IRS annually assists about 128 million taxpayers and processes about 233 million tax returns and $2.1 trillion in payments.  To maintain network integrity and security, the IRS requires all IRS employees and contractors implementing network changes to follow the Change Management Procedure for IRS Network Management (CMP).  In addition, the Change Management Tracking System (CMTS) is to be used for documenting network changes including management approvals, test plans, and completed tests.

However, as of July 2001, Telecommunications management had not implemented oversight procedures to ensure that employees and contractors followed the CMP.  A review of all 28 network change management requests recorded on the CMTS and all 132 requests to the TCS PMO for network changes that were approved by the PMO and/or completed by contractors between September and November 2000 determined that:

·        Fourteen of the 28 CMTS records do not show that changes were properly approved and/or tested before the changes were implemented.

·        None of the 132 TCS service requests were recorded on the CMTS and, therefore, the CMTS does not show that the changes were properly approved and/or tested before they were implemented.

In addition, computer software, designed to allow only authorized employees and contractors to implement network changes and to record on a computer file who accessed the equipment and what changes were made, has been purchased but not implemented because of problems identified during testing.  However, when implemented, the software will work on only one vendor’s equipment.  Management has been unsuccessful in identifying software that would provide the same control over other vendors’ equipment.  Management also had not established who would be responsible for reviewing the computer files and taking action on unauthorized changes.

Without effective oversight of network changes and the implementation of electronic access tools, management cannot ensure network equipment changes are authorized and that network integrity and security are maintained.

Recommendations

The Deputy Commissioner for Modernization & Chief Information Officer should:

10.         Implement management oversight procedures to ensure that employees and contractors follow the CMP.

Management’s Response:  Management plans to issue the Change Management Tracking System document to establish procedures for making changes to the operational network and implement access control software for one vendor’s network devices.

11.         Enhance change management oversight by:

a.              Implementing the change management computer software already purchased.

b.              Identifying, purchasing, and implementing software that is compatible with other vendors’ hardware.

c.              Revising the CMP to establish responsibility for reviewing change management records and taking corrective actions on unauthorized changes.

Management’s Response:  Management plans to issue the Change Management Tracking System document to establish procedures for making changes to the operational network, implement access control software for one vendor’s network devices, and research the availability of tools for other vendors’ network devices and recommend the appropriate purchases.

 

Appendix I

 

Detailed Objective, Scope, and Methodology

 

The overall objective of this audit was to determine whether the Internal Revenue Service (IRS) Information Technology Services (ITS) organization effectively implemented telecommunications data network capacity and performance management policies and procedures.  To accomplish the objective, we:

I.                    Reviewed IRS network management policies, procedures, and performance measures to determine whether they are comprehensive and provide guidance to local and National Headquarters network management personnel.

A.                 Reviewed National Network Management Center’s (NMC), Martinsburg and Tennessee Computing Centers’; Atlanta, Austin, and Memphis IRS Centers’; and Midstates and Southeast Area Offices’ network monitoring procedures to determine whether they:

1.                  Established consistent responsibilities for network monitoring that do not overlap or leave gaps in coverage.

2.                  Provided consistent procedures for monitoring and problem reporting.

3.                  Established criteria, thresholds, and procedures for elevating to high-level IRS management and/or the Treasury Communications System (TCS) Program Management Office (PMO) in the Department of the Treasury problems that are not resolved timely or that reoccur with some frequency.

B.                 Reviewed network capacity planning procedures to determine whether they:

1.                  Established responsibility for conducting capacity planning activities.

2.                  Established procedures for proactive analyses based on performance statistics, periodic reporting of the results, and elevating the results to appropriate management levels.

3.                  Established responsibility and procedures for identifying telecommunications network requirements during the planning phase for system development projects and determining the impact the requirements will have on network capacity and performance.

C.                Reviewed the Change Management Procedure for IRS Network Management, revised September 2000, to determine whether it:

1.                  Required controls for all network changes.

2.                  Required management and technical reviews and approvals.

3.                  Required testing of all changes.

D.                Reviewed the Telecommunications Division network performance measurements to determine whether:

1.                  They measured telecommunications program and improvement goals.

2.                  They are relevant to users’ requirements and expectations.

3.                  The information supporting the measurements is readily available and the measurements are properly recorded.

E.                 Obtained organization and staffing charts from the NMC, Martinsburg and Tennessee Computing Centers; Atlanta, Austin, and Memphis IRS Centers; and Midstates and Southeast Area Offices to determine the resources that these locations assigned to do the network management activities.

II.                 Reviewed a sample of problem tickets to determine whether network performance monitoring capabilities were implemented and problems that performance monitoring activities identified were resolved.

A.                Sampled and tested problem tickets to determine whether problems were resolved timely.

1.                  Identified and downloaded to Treasury Inspector General for Tax Administration computers the 457 problem tickets recorded on the NMC Log Management System (LMS) between September 1 and November 30, 2000.  Determined that the population contained problems with differing characteristics (e.g., circuit and non-circuit problems, and problems resolved by IRS employees, NMC or TCS contractors).  The electronic data were validated by determining that the LMS numbered the problem tickets sequentially and verifying that the computer file contained all problem ticket numbers.

2.                  Due to the varying characteristics of the problem tickets, we decided not to project the results over the population.  Therefore, we selected a judgmental sample of 91 problem tickets (interval sample of every fifth ticket) with a randomly selected starting point.  A copy of the Integrated Network and Operations Management System (INOMS) record associated with each sample problem ticket was also obtained to complete the IRS information.

3.                  Using the LMS and INOMS information, measured the resolution time for each sampled problem ticket in business days from the date and time each problem was recorded until it was resolved and stratified the results (e.g., 0 – 1, 1 – 2, 2 – 5, and over 5 business days).  For this analysis, we assumed that each location’s business hours were 8:00 AM to 5:00 PM, weekdays only, and that problems should be resolved within 8 business hours (1 business day), the minimum TCS contract standard.

4.                  Reviewed each sampled problem ticket that was not resolved within 1 business day to determine whether the problem ticket was included on daily Network Event Status Reports.  Also, unresolved problem escalation procedures were discussed with Telecommunications Division managers.

B.                    Reviewed the 457 LMS problem tickets (selected in Test II.A.) to identify equipment and circuits with multiple events reported between September and November 2000.  The problem tickets were reviewed to determine whether duplicate reporting occurred or repetitive problems were elevated to appropriate management levels for attention.

1.                  Reviewed the 457 LMS problem tickets and associated INOMS records to determine whether duplicate tickets were prepared and the cause was determined.

2.                  Reviewed the LMS problem tickets and associated INOMS records for circuits and equipment with multiple events to determine the time periods they occurred in and whether Telecommunications employees reported them as chronic problems.

3.                  Reviewed telecommunications documentation associated with repetitive problems to determine whether the problems identified by the auditors were elevated to IRS management.

C.                Reviewed available TCS Trouble Ticket System (TTS) Reports (DRD-031) to determine whether results were reported for September through November 2000 and reviewed a Telecommunications Division and TCS contractor analysis of chronic problems.

III.               Reviewed samples of performance statistics and network capacity planning documents to determine whether Telecommunications management implemented proactive capacity planning activities.

A.                Obtained Internet firewall log data for September 1 through November 30, 2000.  The data identified source and destination addresses, the size of the web objects, and dates and transmission times for each access through the firewall during the period.  The data were analyzed for the following information:

1.                  Misrouted IRS Intranet Traffic – Determined the volume of IRS Intranet traffic (from Intranet address to Intranet address) that is misrouted through the Internet firewalls.

2.                  Advertising Banners – Determined the volume of data that known Internet advertisers transmitted to IRS addresses through the Internet firewall.

B.                 Discussed with Telecommunications management how capacity planning analyses are reported and reviewed the one capacity planning document that was produced for the Telecommunications Division to determine whether they:

1.                  Analyzed network statistics for misrouted IRS Intranet traffic or advertising banners or similar conditions and reported the results.

2.                  Used performance statistics to evaluate immediate and long-term capacity requirements and to support the business cases for acquisitions.

3.                  Evaluated the impact on the telecommunications network of system consolidation projects.

C.                Reviewed WAN performance reports for February 2001, the TCS circuit inventory listing as of March 2001, and TCS Service Request listings for FY 2000 and FY 2001 to evaluate the effectiveness of capacity planning activities.

1.                  The performance reports identified 306 circuits and 68 ports that carried WAN traffic.  Reviewed the performance reports for all circuits and ports to identify traffic volumes that exceeded the circuits’ and ports’ guaranteed capacity during peak periods or traffic that used less than 10 percent of the capacity.

2.                  Reviewed the performance reports, circuit inventory, and Service Request reports to identify the WAN circuits that were upgraded in FY 2000 and FY 2001 but were not shown in the February 2001 performance reports and to determine the purchase cost of circuits upgraded and disconnected during FY 2000 and FY 2001.

IV.              Reviewed all 28 Change Management Tracking System (CMTS) records created between September 1 and November 30, 2000, and all 132 TCS Service Requests approved by the TCS PMO or completed during the same period to determine whether the Change Management Procedure for IRS Network Management was implemented and enforced.

Appendix II

 

Major Contributors To This Report

 

Scott E. Wilson, Assistant Inspector General for Audit (Information Systems Programs)

Gary Hinkle, Director

Danny Verneuille, Audit Manager

Barbara Bartuska, Senior Auditor

Frank Greene, Senior Auditor

Larry Reimer, Senior Auditor

Olivia Jasper, Auditor

Linda Screws, Auditor

 

Appendix III

 

Report Distribution List

 

Commissioner  N:C

Chief, Information Technology Services  M:I

Deputy Chief, Information Technology Services M:I

Director, Corporate Computing  M:I:E

Director, Desktop Management M:I:F

Director, IT Midstates Area M:I:F:MS

Director, IT Service Center Operations M:I:SC

Director, IT Southeast Area M:I:F:SE

Director, Martinsburg Computing Center M:I:E:MC

Director, Telecommunications M:I:T

Director, Tennessee Computing Center M:I:E:TC

Director, Strategic Planning and Client Services  M:I:SP

Chief Counsel CC

National Taxpayer Advocate  TA

Director, Legislative Affairs  CL:LA

Director, Office Program Evaluation and Risk Analysis  N:ADC:R:O

Office of Management Controls  N:CFO:F:M

Audit Liaisons:

Chief, Information Technology Services  M:I

Director, Corporate Computing M:I:E

Director, Desktop Management  M:I:F

Director, IT Service Center Operations  M:I:SC

Director, Telecommunications  M:I:T

 

Appendix IV

 

Outcome Measures

 

This appendix presents detailed information on the measurable impact that our recommended corrective actions will have on tax administration.  These benefits will be incorporated into our Semiannual Report to the Congress.

 

Type and Value of Outcome Measure:

 

·        Cost Savings, Recommendations That Funds Be Put to Better Use – Potential; $4.8 million in employee salaries (see page 3).

 

Methodology Used to Measure the Reported Benefit:

 

We reviewed information about the Telecommunications Division National Network Management Center (NMC) contractors’ and Martinsburg Computing Center (MCC) and Tennessee Computing Center (TCC) employees’ network management duties; their network monitoring, problem reporting, and troubleshooting methods; and their Position Description job titles, pay grades, and tours of duty. Based on the employees’ pay grades, we estimated the salaries that could be saved if the overlapping network monitoring and problem reporting duties were eliminated.

 

   

Total salaries of 29 MCC and TCC employees who monitor Wide Area Network (WAN) circuits (actual grades, estimated step 5), rounded to thousands

$1,283,000

Percent of work hours spent on network monitoring duties (estimated by MCC management)

75 percent

Estimated salary savings ($1,283,000 * 75 percent), rounded to thousands

$963,000

Estimated 5-year savings ($963,000 * 5 years)

$4,815,000

Estimated number of employees (29 * 75 percent), rounded to whole number

22

 

Type and Value of Outcome Measure:

 

·        Protection of Resources/ Reliability of Information – Actual; $1.9 million spent (see page 11).

 

Methodology Used to Measure the Reported Benefit:

 

The Internal Revenue Service’s (IRS) WAN circuits were identified by reviewing the WAN circuit performance reports for February 2001, the TCS circuit inventory report as of March 2001, and the IRS Service Request reports for FY 2000 and FY 2001.  The Service Request reports also identified the purchase costs.  Comparison of the reports identified 37 WAN circuits that were upgraded to current technology between January and November 2000 at a cost of approximately $1.9 million.  These circuits were disconnected in December 2000, after being used for only 1 to 11 months, when the IRS reconfigured the WAN.

Appendix V

 

Management’s Response to the Draft Report

 

The response was removed due to its size.  To see the complete response, please go to the Adobe PDF version of the report on the TIGTA Public Web Page.