TREASURY INSPECTOR GENERAL
FOR TAX ADMINISTRATION
THE INTERNAL REVENUE SERVICE HAS IMPROVED
CONTROLS OVER THE USE OF INTERAGENCY AGREEMENTS
Reference No. 095001
The Internal Revenue Service (IRS) has significantly improved the controls over the use of interagency agreements. Specifically, Contracting Officerís Technical Representatives (COTRs) have been established in the IRS program offices to administer interagency agreements, and additional guidance has been provided by IRS Procurement to the program offices to assist in administering interagency agreements. IRS Procurement has centralized the requisitioning process to ensure all interagency agreements are consolidated in one listing. Additionally, most Contracting Officers (COs) are documenting the cost reasonableness and rationale for selection of an interagency agreement versus other contracting vehicles.
Although improvements have been made within the program area, additional emphasis is needed to fully address previously reported concerns over the payment process.
Additional Emphasis Is Needed to Improve Controls over the Payment Process for Interagency Agreements
While IRS program offices have made some improvement in the billing process, continued emphasis is needed to ensure that billing documents are properly received and government resources are adequately protected. We found that 3 of 22 COTRs still did not receive and/or review billing documentation for accuracy. Also, only 8 of 22 COTRs signed the certification forms acknowledging receipt and acceptance of the goods and services.
There is some confusion among the COTRs and COs regarding how payments are made for the interagency agreements. Some of the COs and COTRs did not understand the different payment methods or the overall payment process for interagency agreements. Without a clear understanding of the payment process, the COs cannot ensure that the COTRs are following the correct payment process. Furthermore, because the COTRs are not properly verifying expenses and acknowledging the receipt and acceptance of goods, the IRS has no assurance that funds have been properly expended.
Summary of Recommendation
Additional guidance and/or training should be provided to clarify responsibilities in the payment process.
Managementís Response: The Assistant Commissioner (Procurement) agreed with the facts cited in the report and is providing additional guidance on the payment process for interagency agreements. Managementís comments are included in the body of the report where appropriate and the complete text appears as Appendix IV.