TREASURY INSPECTOR GENERAL FOR
TAX ADMINISTRATION
THE INTERNAL
REVENUE SERVICE BUILDING FLOOD CAUSED NO MEASURABLE IMPACT ON TAX
ADMINISTRATION
Issued on February 7, 2007
Highlights
Highlights of
Report Number: 2007-30-028 to the
Internal Revenue Service Commissioner.
IMPACT ON TAXPAYERS
In June 2006, the subbasement and basement of
the Internal Revenue Service (IRS) National Headquarters building in
WHY TIGTA DID THE AUDIT
This audit was initiated at the request of the Ranking
Member of the United States Senate Committee on Finance. TIGTA’s objective was to determine the extent and nature of
disruptions to IRS operations and to identify the functions most affected by
the flood. The request also asked that
TIGTA determine the cost and challenges the IRS faced in dealing with the
flood, how it plans to pay for remediation, and the impact on taxpayers and tax
administration.
WHAT
TIGTA FOUND
The IRS personnel who
work in the Headquarters building are involved with activities that do not
require a significant amount of day-to-day contact with taxpayers. However, many IRS personnel displaced by the
flood were either unable to telecommute or unable to do so effectively, which
resulted in granting IRS personnel approximately 101,000 hours of
administrative leave (excused absence from work with no loss of pay) that may
have otherwise lowered the $4.2 million of salary costs associated with the
leave.
In
addition, the IRS needs to complete a comprehensive assessment that captures
the overall successes and lessons learned in responding to and recovering from
the flood. Such an assessment could
provide a roadmap for IRS officials to use in the future when faced with a
similar challenge or one of greater magnitude.
WHAT TIGTA RECOMMENDED
The Chief Human Capital Officer should develop a
business case for deciding whether to expand telecommuting participation by
increasing the availability of laptop computers for IRS personnel, including
comparing the various costs and benefits associated with replacing desktop
computers as they reach the end of their useful lives with laptop computers. The Chief, Agency-Wide Shared Services, should
ensure a comprehensive analysis is completed and well documented on the IRS’
overall performance in responding to and recovering from the flood.
In regard to our first recommendation, the IRS
agreed that expanding telecommuting participation and the use of laptops can
serve business resumption needs, noting among other things that, during its
incident management and business resumption preparedness activities, it will
advocate the consideration and use of telecommuting as a contingency planning
strategy, encourage using laptops in emergency situations, and recommend that
these decisions be included in its business resumptions plans. The IRS also expressed the position that our
recommendation extended beyond the scope of its Chief Human Capital Officer's responsibility
and, therefore, did not commit to developing a business case for deciding
whether to expand telecommuting participation by increasing the availability of
laptop computers for its personnel.
TIGTA is pleased the IRS recognized the import
role that telecommuting and the availability of laptops can play in preparing
for and responding to emergency events, so the risk of disrupting Federal Government
services is minimized. TIGTA is
concerned, however, about the IRS’ decision to advocate, rather than require,
that its business units develop business case analyses for deciding whether to
expand telecommuting participation by increasing the availability of laptop
computers for its personnel. Business
case analysis is a well recognized process in the Federal Government and
private industry to demonstrate that a particular need exists and how that need
can best be satisfied with available resources.
Consequently, without such analysis, business units may not be as likely
to take all the necessary steps to ensure their personnel are well positioned
to continue delivering services and performing operations in the event of an
extended emergency.
In responding to our
second recommendation, the IRS indicated, among other things, it is finalizing
a document to capture the analysis conducted and lessons learned from the
flood.
READ THE FULL REPORT
To view the report,
including the scope, methodology, and full IRS response, go to:
http://www.treas.gov/tigta/auditreports/2007reports/200730028fr.html.
Email
Address: Bonnie.Heald@tigta.treas.gov
Phone Number: 202-927-7037
Web Site:
http://www.tigta.gov