Follow-Up Review of Accounts
Payable Scanning System
July 2004
Reference
Number: 2004-1C-124
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.
July 15, 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: Follow-Up Review of Accounts Payable
Scanning System (Audit #20041C0234)
The
Defense Contract Audit Agency (DCAA) examined the contractor’s accounts payable
scanning system and related Electronic Data Processing (EDP) internal controls,
as of March 19, 2004, to assure the contractor’s system is adequate to provide
for the accuracy and reliability of information being generated by the EDP
scanning system. The purpose of the
examination was to evaluate the implementation, accuracy, and effectiveness of
the contractor’s corrective action plans and to reassess control risk and
adequacy of the accounts payable scanning system.
According
to the DCAA, the original review, dated November 5, 2001, of the contractor’s
accounts payable scanning system disclosed two deficiencies. The contractor agreed to implement
appropriate actions to correct the cited deficiencies.
The
DCAA opined that the contractor’s current accounts payable scanning system and
related internal control polices and procedures are adequate. The DCAA considers the corrective actions
taken by the contractor sufficient to assure the reliability and integrity of
contractor cost data managed by the system.
The review was limited to an examination of the corrective actions taken
by the contractor. Accordingly, the
DCAA expresses no opinion on the contractor’s system of internal controls taken
as a whole.
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.