TREASURY INSPEcTOR GENERAL
FOR TAX ADMINISTRATION
REVIEW OF THE SERVIcE'S PROcESS FOR
REcONcILING GENERAL LEDGER AccOUNTS
TO SUBSIDIARY AccOUNTS EXTERNAL TO RAcS
Reference No. 090700
Date: November 30, 1998
The Service’s revenue accounting transactions are captured on the Revenue Accounting control System (RAcS). The RAcS is located at each service center and serves as the revenue accounting control General Ledger. The Service center Accounting Branch is responsible for maintaining the General Ledger and for reconciling the General Ledger accounts to their subsidiary ledgers.
This review was originally scheduled as one of eighteen different reviews in the Accounting function. As a result, this review addressed only the Service center Accounting Branch’s reconciliation process and did not verify the reconciliation procedures in any of the other functions.
Seventy-seven of the Service's 168 General Ledger accounts are supported by subsidiary accounts that are not maintained on RAcS. We selected seven of the seventy-seven accounts and reviewed the Service's processes and controls for reconciling the General Ledger and subsidiary account balances. We found that adequate procedures and controls were in place to ensure that the General Ledger and subsidiary accounts were timely and properly reconciled.