TREASURY INSPEcTOR GENERAL
FOR TAX ADMINISTRATION
REVIEW OF THE SERVIcE'S YEAR 2000
NON-INFORMATION TEcHNOLOGY PROJEcT
Reference No. 090503
Date: November 4, 1998
The Non-Information Technology (Non-IT) environment encompasses equipment types that do not fall under the definition of Information Technology, such as facilities systems and office equipment. Although Year 2000 conversion efforts primarily focus on information systems, there are numerous facility systems and personal property items that could be impacted by the century date change. Systems and equipment that utilize computer software and/or microchips that are not Year 2000 compatible may not operate properly, therefore affecting IRS operations.
The Service has initiated steps to prepare its Non-IT environment for the Year 2000. These efforts focus on facility-type equipment and personal property items, which utilize microchips, software, firmware, or other mechanisms that control time and date logic. During the course of our review, we identified additional program management activities which should be utilized to enhance the Non-IT conversion efforts.
The overall objective of this review was to determine whether the Service is adequately preparing its Non-IT environment for the Year 2000. In addition, we determined whether the century Date change (cDc) Project Office’s program management approach would decrease the risk(s) associated with assessing and converting the Service’s Non-IT systems and equipment.
Although the Service has initiated steps to prepare its Non-IT environment for the Year 2000, a significant amount of work must still be completed to ensure Non-IT equipment becomes Year 2000 compliant. In addition, the cDc Project Office needs to enhance its program management efforts to better direct and coordinate Non-IT conversion activities.
The Required Steps For completing The Entire Non-IT conversion Strategy Need To Be Defined
The requirements for all phases of the Non-IT conversion strategy have not been completely defined. The Non-IT conversion strategy consists of five phases: awareness, assessment, renovation, validation, and implementation. We determined that the Non-IT Milestone Plan and supplemental work breakdown schedules developed to support these activities were not complete. That is, the plans and/or schedules did not define the specific tasks to be accomplished during the renovation, validation, or implementation phases. The lack of a complete, comprehensive, and well-supported strategy/work breakdown schedule can increase the risk associated with converting systems and equipment.
Building Prioritization Efforts Should Be Expanded To Better Aid In Monitoring And Guiding Year 2000 conversion Activities
Service personnel have not prioritized all IRS occupied facilities to aid in determining overall Year 2000 impact. IRS personnel occupy over 800 facilities nationwide. While GSA maintains responsibility for the majority of these buildings, the Department of Treasury has requested agencies to prioritize occupied buildings to aid GSA in its conversion efforts. However, the Service’s prioritization efforts only covered 129 of approximately 800 IRS occupied facilities. These buildings account for only 16% of the complexes where IRS employees are located. Without a complete list of prioritized sites, Service personnel cannot be assured that GSA will target equipment and/or systems in the appropriate IRS buildings for conversion/replacement.
Increased Oversight And coordination Is Needed To Ensure A consistent and Adequate Approach Is Used To convert Investigative Equipment
The process used to certify the Service’s investigative equipment as Year 2000 compliant was not consistent with the Service’s overall Non-IT process. This primarily occurred because investigative equipment was not included in the Service’s overall Non-IT activities due to the sensitive nature of the equipment and concerns with disclosing the inventory. As such, reliance was placed on certifications provided by the respective heads of office. In addition, Inspection completed most of its conversion activities before the cDc Project Office drafted internal guidelines and obtained contractor support to assist in providing the necessary oversight and guidance. The criminal Investigation function primarily relied on the work completed by Inspection to avoid duplicating conversion efforts.
Management’s response was not available for inclusion in the report at the time this final report was issued. We were informed that management is developing actions to address our concerns and will provide us with a written description of their proposed corrective actions at a later date.