TREASURY INSPEcTOR GENERAL
FOR TAX ADMINISTRATION
FOLLOW-UP REVIEW OF SELEcTED PUBLISHING SERVIcES
AcTIVITIES IN THE INTERNAL REVENUE SERVIcE'S NATIONAL OFFIcE
Reference No. 092802
Date: March 4, 1999
Our March 5, 1997, audit report titled Review of Selected Publishing Services Activities in the National Office contained several recommendations to increase the Internal Revenue Serviceís (IRSí) effectiveness in administering its printing operations. The overall objective of this follow-up review was to determine whether corrective actions taken in response to the prior audit report were implemented adequately and were operating effectively.
The IRS has not addressed all the corrective measures from the prior audit report. Multimedia Production Division management needs to take further action at the first-line employee level to effectively control rush jobs and resolve billing discrepancies.
Improve Quality Review controls over Processing Rush Job Transactions and Broaden the Efforts to Minimize Rush Orders
Management has taken initial steps to improve controls over processing rush jobs by re-emphasizing existing rush job procedures to employees, and educating customers on the most cost-efficient methods for procuring printing goods. However, management should ensure that employees adhere to the proper operating procedures for processing rush job transactions. Without effective controls, management has no assurance that their efforts to minimize rush jobs are successful.
Ensure Procedures clearly Provide Instructions for Resolving Billing Discrepancies
Managementís corrective action was not effective in implementing procedural changes to ensure that printing specialists document and retain evidence of their actions for resolving billing discrepancies. The Publishing Services Data Financial Administrator had to obtain oral explanations from printing specialists to resolve some discrepancy cases when the documentation did not exist. Without appropriate documentation and managerial review of resolved billing discrepancies, management has no assurance that bills are correctly paid and potential improper practices are identified.
Summary of Recommendations
The following recommendations were made to Multimedia Production Division management for improving controls over rush jobs and billing discrepancies:
Management's Response: IRS management agreed with the facts cited in the report and is taking the appropriate corrective action. Managementís comments are included in the body of the report where appropriate and a complete text appears as Appendix IV.