Development and Implementation of an Enterprise Business System

 

June 2004

 

Reference Number:  2004-1C-112

 

 

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

 

June 21, 2004

 

 

MEMORANDUM FOR DAVID A. GRANT

                                         DIRECTOR OF PROCUREMENT

                                         INTERNAL REVENUE SERVICE

 

FROM:     Daniel R. Devlin /s Daniel R. Devlin

                Assistant Inspector General for Audit (Headquarters Operations and

                Exempt Organizations Programs)

 

SUBJECT:     Development and Implementation of an Enterprise Business System (Audit #20041C0230)

 

The Defense Contract Audit Agency (DCAA) provided auditor involvement concerning the contractor’s development and implementation of an Enterprise Business System (EBS) in accordance with DCAA audit guidance.  The purpose of the assignment was to continue DCAA’s efforts concerning the contractor’s conversion to an EBS by January 1, 2004.  Accordingly, the DCAA provided oversight concerning control requirements as well as comments on concerns identified during the development of the EBS.  Also, subsequent to the contractor’s January 1, 2004, implementation of the EBS, the DCAA performed data conversion accuracy tests and tests of initial accounting data generated by the EBS. 

The DCAA’s involvement to date has not disclosed any system design and configuration issues that would have a significant adverse impact to the Federal Government.  However, the DCAA has noted that the contractor currently maintains an “Issues Log” that describes various problems encountered by users of the EBS and associated corrective actions by functional area.

In August 2004, the DCAA will initiate an accounting system audit to verify corrections of functional area issues and to perform tests designed to render an opinion on the contractor’s overall accounting system and related internal controls.

The information in this report should not be used for purposes other than those intended without prior consultation with the Treasury Inspector General for Tax Administration regarding their applicability.

If you have any questions, please contact me at (202) 622-8500 or John R. Wright, Director, at (202) 927-7077.

 

Attachment

NOTICE:

The Office of Inspector General for Tax Administration has no objection to the release of this report, at the discretion of the contracting officer, to duly authorized representatives of the contractor.

 

The contractor information contained in this report is proprietary information.  The restrictions of 18 U.S.C. § 1905 must be followed in releasing any information to the public.

 

This report may not be released without the approval of this office, except to an agency requesting the report for use in negotiating or administering a contract with the contractor.

 

The TIGTA seal was removed due to its size.