TREASURY INSPECTOR GENERAL FOR TAX ADMINISTRATION

 

 

The Internal Revenue Service Is Making Progress Toward Implementing Daily Processing of Individual Tax Returns

 

 

 

July 24, 2012

 

Reference Number:† 2012-40-085

 

 

 

This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.

 

Phone Number† /† 202-622-6500

E-mail Address /TIGTACommunications@tigta.treas.gov

Website†††††††††† /http://www.tigta.gov

 

 

HIGHLIGHTS

The Internal Revenue Service Is Making Progress Toward
Implementing Daily Processing of Individual Tax Returns

Highlights

Final Report issued on July 24, 2012

Highlights of Reference Number:† 2012-40-085 to the Internal Revenue Service Commissioner for the Wage and Investment Division.

IMPACT ON TAXPAYERS

The Customer Account Data Engine 2 (CADE 2) will expand daily processing of individual tax returns and will result in a single relational database that houses all individual taxpayer accounts.† This database will replace the Individual Master File and serve as a central source of individual tax return data, making reporting and retrieval of taxpayer account data faster and more efficient.† The benefits of daily processing include faster refunds for taxpayers and timelier responses to taxpayersí inquiries about their accounts.

WHY TIGTA DID THE AUDIT

This audit was initiated as part of our efforts to evaluate the IRSís modernization of its tax processing systems.† The overall objective of this review was to evaluate the accuracy of the IRSís implementation of daily tax return processing during the 2012 Filing Season.

WHAT TIGTA FOUND

At the end of Calendar Year 2011, the IRS had identified more than 122 million taxpayer accounts for daily processing and more than 148 million taxpayer accounts for weekly processing.† Through April 30, 2012, the IRS had successfully processed 71 million individual tax returns through daily tax return processing.†

The IRSís planning efforts reduced the risk associated with the daily processing of individual tax returns.† In addition, the IRS accurately identified tax accounts for daily processing.†

The IRS analyzed tax account transactions and other conditions that affect tax return processing and identified those that would require additional time to ensure tax returns were processed correctly.† These transactions are referred to as disqualifiers.† Tax accounts that contain one or more disqualifiers will continue to be processed weekly.† Our review of 89 of 108 disqualifiers on more than 79 million taxpayer accounts processed between January 17 and February 29, 2012, found that the IRS computer system was correctly programmed.† ††

The IRS conducted reviews of tax accounts and tax return transactions during the 2012 Filing Season to monitor the accuracy of CADE 2 processing.† However, it verified only a fraction of the approximately 119 million individual tax returns processed through April 30, 2012.† In addition, the IRS did not track which disqualifiers it verified as part of its review.† Unless the IRS verifies at least a limited number of tax accounts that contain each of the identified disqualifiers, it cannot be assured that individual tax account transactions are properly posting to the Master File.

WHAT TIGTA RECOMMENDED

TIGTA made no recommendations as a result of the work performed during the review.† However, key IRS officials reviewed the report prior to its issuance and agreed with the facts and conclusions presented.†

 

July 24, 2012

 

 

MEMORANDUM FOR COMMISSIONER, WAGE AND INVESTMENT DIVISION

 

 

FROM:†††††††††††††††††††††† Michael E. McKenney /s/ Michael E. McKenney

††††††††††††††††††††††††††††††††† Acting Deputy Inspector General for Audit

 

SUBJECT:††††††††††††††††† Final Audit Report Ė The Internal Revenue Service Is Making Progress Toward Implementing Daily Processing of Individual Tax Returns (Audit # 201140048)

 

This report presents the results of our review to evaluate the accuracy of the Internal Revenue Serviceís implementation of daily tax return processing during the 2012 Filing Season.[1] †This review is included in our Fiscal Year 2012 Annual Audit Plan and addresses the major management challenge of Modernization.

Management did not provide a formal response to this report.† However, key IRS officials reviewed the report prior to its issuance and agreed with the facts and conclusions presented.

Copies of this report are also being sent to the Internal Revenue Service managers affected by the report.† Please contact me at (202) 622-6510 if you have questions or Augusta R. Cook, Acting Assistant Inspector General for Audit (Returns Processing and Account Services), at (770) 617-6434.

 

 

Table of Contents

 

Background

Results of Review

Planning Efforts Were Sufficient to Reduce the Risk Associated With Daily Processing for Individual Tax Returns

The Internal Revenue Service Accurately Identified Tax Accounts for Daily and Weekly Processing

Appendices

Appendix I Ė Detailed Objective, Scope, and Methodology

Appendix II Ė Major Contributors to This Report

Appendix III Ė Report Distribution List

Appendix IV Ė Glossary of Terms

 

 

Abbreviations

 

CADE

Customer Account Data Engine

GAO

Government Accountability Office

IRS

Internal Revenue Service

TIGTA

Treasury Inspector General for Tax Administration

 

 

Background

 

The Internal Revenue Serviceís (IRS) main processing system for individual tax returns was developed more than 50 years ago and processes tax returns on a weekly basis.† The IRS continued to process individual tax returns on a weekly basis until Processing Year[2] 2005, when the IRS implemented an initiative to process individual tax returns daily.† This initiative, referred to as the Customer Account Data Engine (CADE), was designed to post information to taxpayersí accounts daily rather than weekly.† The IRS anticipated that the CADE would facilitate faster refunds to taxpayers and allow IRS employees to provide improved service to taxpayers because employees would have up-to-date, accurate account information available.† As of Processing Year 2009, the IRS had posted more than 40 million individual tax returns to the Individual Master File (Master File) through the CADE.†

In August 2008, a team of high-level IRS officials concluded that the IRS did not have the capability to complete and release the CADE as originally planned.† Factors the IRS considered include:

In June 2009, the IRS Commissioner approved a revised plan to better manage individual tax return accounts called the CADE 2 Program.† The CADE 2 Program will build on the CADE data model and database design to better manage all individual taxpayer accounts.† In addition to expanding the daily processing of individual tax returns, the CADE 2 will result in a single relational database that houses all individual taxpayer accounts.† This database will replace the Master File and serve as a central source of individual tax return data, making reporting and retrieval of taxpayer account data faster and more efficient.† The IRS indicates that the CADE 2 will result in timelier taxpayer data, increased analytical data stores, improved or increased tools to more effectively use data for compliance and customer service, and enhanced data security.† The CADE 2 Program is scheduled to replace the Master File in Calendar Year 2014 or 2015.†

The IRS plans to deliver the CADE 2 Program through a series of stages known as Transition States.† The IRS began to deliver Transition State 1 in January 2012.† Transition State 1 consists of three primary objectives:

       Process individual tax returns daily rather than weekly.† The IRS began processing individual tax returns daily through the CADE 2 in January 2012.†

       Develop a CADE 2 database and populate the database with individual taxpayer accounts. †The IRS is not scheduled to fully populate the CADE 2 database until August 2012.

       Make progress toward resolving material financial weaknesses reported by the Government Accountability Office (GAO).[3] †For example, the GAOís Fiscal Year 2011 evaluation of the IRSís internal controls identified a continuing material weakness over unpaid tax assessments.† The GAO indicated this weakness is due to the IRSís inability to rely on its financial management systems for tax-related transactions and its underlying subsidiary records to report taxes receivable, compliance assessments, or write-offs in accordance with Federal accounting standards. †The implementation of the CADE 2 database during Transition State 1 will provide a basis for the IRS to begin to address reported financial material weaknesses.

Transition State 2 will focus on resolving financial material weaknesses and building or modifying existing applications to directly interact with the CADE 2 database.† The IRS estimates it will complete Transition State 2 in Calendar Year 2014 or 2015.† The IRS does not have an estimated date as to when all of the planned CADE 2 functionality (Target State) will be implemented.

This review was performed at the IRS National Headquarters in Washington, D.C., in the Wage and Investment Division, Business Modernization Office, and the Modernization and Information Technology Services organization, Applications Development Office, during August 2011 through April 2012.† Our review was limited to an assessment of the IRSís implementation of daily processing for individual tax returns as part of the CADE 2 Transition State 1.† We conducted this performance audit in accordance with generally accepted government auditing standards.† Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective.† We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective.† Detailed information on our audit objective, scope, and methodology is presented in Appendix I.† Major contributors to the report are listed in Appendix II.

 

 

Results of Review

 

Our assessment of the IRSís planning efforts for the implementation of daily tax return processing during the 2012 Filing Season showed that the IRSís efforts were sufficient to ensure tax account transactions are processed to the Master File on a daily basis.† The IRS processed approximately 119 million individual tax returns as of April 30, 2012.† Of these, approximately 71 million (60 percent) individual tax returns were posted to the Master File using daily tax return processing.

Planning Efforts Were Sufficient to Reduce the Risk Associated With Daily Processing for Individual Tax Returns

The IRS began work on the CADE 2 in the middle of Calendar Year 2009.† Each IRS business unit with a role in individual tax return processing participated in the planning activities by completing an assessment to determine how its unit would be affected by the CADE 2.† These impact assessments addressed several categories:† training, policy, resources, the Internal Revenue Manual, changes in tours-of-duty, new position descriptions, and standard operating procedures.† The assessments also included an evaluation of the number of employees affected.

Once the impact assessments were completed, the business units worked with the Business Modernization Officeís CADE 2 Transition Management team (Transition team) to develop readiness plans to address the impacted areas.† The readiness plans included descriptions of the impacts identified, actions that would be taken to address the impacts, and the dates the actions would be completed or implemented.† Each business unit had a national point of contact that was responsible for updating their business unitís readiness plan and coordinating with the Transition team.† In addition, the Transition team had biweekly meetings with the national points of contact to discuss the status of the readiness plans and any related issues.† IRS executives certified in late December 2011 and early January 2012 that their business units were prepared for the deployment of the CADE 2 Transition State 1 in January 2012.

We reviewed 18 impact assessments and 31 readiness plans.† In addition, we attended weekly meetings between the Transition team and the national points of contact between October 2011 and February 2012.† Our assessment raised no concerns with the IRSís planning efforts for the CADE 2 Transition State 1.† Figure 1 presents a timeline of the IRSís planning for the first phase of the CADE 2 implementation.

Figure 1:† Timeline of IRS Planning Efforts for CADE 2 Daily Processing

Time Frame

Activity

June 2009

The IRS Commissioner chartered the CADE 2 Program to implement a revised plan that would build on some features of the previous CADE processing platform.†

August 2009

The Business Modernization Officeís CADE Project Office staff (referred to as the Project Office) at the National Office and representatives from all of the business operating divisions put together the plan for the CADE 2.† The Project Office started with the existing CADE requirements and enhanced them for the CADE 2.† In addition, it analyzed more than 900 of the various processing codes[4] and determined whether each item should be processed daily or weekly.†

August and September 2009

The Project Office had multiple meetings with the Master File programmers to analyze how the various processing codes interrelated with the computer programs.† Additional information and details were obtained from meetings between the Modernization and Information Technology Services organization and technical persons within the business operating divisions, meetings among the business partners, and meetings with the Chief Financial Officer.† The combined information obtained from these meetings was used to prepare the first draft of the information technology products and services request in September 2009.

May 2010 to November 2011

The Project Office had numerous follow-up meetings with the business operating divisions to analyze and compare the requirements against the draft computer programming.†

December 2011

A computer program was executed that would establish an indicator on all individual tax accounts to show whether an account could be processed daily.

January 2012

The final computer programming was put into place for the beginning of the
2012 Filing Season.

Source: †CADE Project Office.

The IRS developed a list of items that can be processed daily versus weekly

Although the IRS is moving from weekly processing of individual tax returns to daily processing, not all individual tax returns can be processed daily.† Individual tax returns that require additional actions to ensure the tax return is accurate before it can be processed must continue to be processed on a weekly basis to allow the IRS time to verify and correct the tax return before it posts to the Master File.† The IRS included efforts in its CADE 2 planning to identify specific tax return transactions and taxpayer accounts that require additional review prior to processing the tax return.† Based on its analysis, the IRS identified approximately 148 million taxpayer accounts that contained characteristics that would cause a tax return to be processed weekly (called disqualifiers).† The IRS grouped the disqualifiers into four categories.

We reviewed the IRSís categories of disqualifiers and performed limited testing to ensure the lists were complete.† We identified four key areas of tax return processing that we believe could result in erroneous refunds being issued if tax returns identified by these programs are not resequenced to allow the IRS adequate time to verify the tax return.

    Taxpayer accounts that went through the Electronic Fraud Detection System.

    Taxpayer accounts reviewed by the Accounts Management Taxpayer Assurance Program.

    Taxpayer accounts that could receive a notice.

    Taxpayer accounts that went through a pre-refund examination program.†

We met with representatives from each of these areas and identified transactions that they believed would be on the tax account if a tax return went through one of these areas.† We then compared the transactions identified with the IRSís list of disqualifiers.† Our analysis found that the IRS adequately considered all of the transactions associated with our four high-risk areas when compiling the items that should be disqualified from daily processing.

In addition, the IRS is continuing to refine its list of transactions and tax accounts that can be processed daily.† Representatives from the CADE 2 Business Modernization Office and the Modernization and Information Technology Services organization met in early March 2012 to discuss the need to identify additional transactions that could be processed daily. †As a result of these meetings, the IRS requested revisions to the programming for Processing Year 2013 to allow additional items to be processed daily.† It requested these revisions because IRS employees need to know events that occur on tax accounts as quickly as possible to ensure they have the most accurate information when processing the tax return and responding to taxpayer inquiries.†

The Internal Revenue Service Accurately Identified Tax Accounts for Daily and Weekly Processing

At the end of Calendar Year 2011, the IRS identified all individual tax accounts with one or more Entity, Tax Module Freeze, or Tax Module Transaction disqualifiers.† The IRS placed an indicator on each of these accounts to show that the individual tax returns filed on these tax accounts must be processed weekly.† The IRS marked all other tax accounts for daily processing.† At the end of Calendar Year 2011, the IRS had identified more than 122 million tax accounts for daily processing and more than 148 million tax accounts for weekly processing.

The IRS began applying the Incoming Transactions disqualifiers to taxpayer accounts during Processing Year 2012.† As individual tax returns are processed, the IRS evaluates the actions taken on the tax returns.† If a disqualifying incoming transaction occurs on a tax account that was previously identified for daily processing, the IRS updates the daily processing indicator on the tax account to show the account must now be processed weekly.

Our analysis of the IRSís processing of tax return transactions posting to the Master File indicates that the IRS correctly programmed transactions that should have been disqualified from daily processing.† We selected a judgmental sample[5] of 89 (82 percent) of the 108 IRS-identified disqualifiers posting between January 17 and February 29, 2012.† Our analysis of more than 79 million taxpayer accounts that contained one or more of these 89 disqualifiers found that the majority of items designated for weekly processing are being processed correctly.† Figure 2 below provides the results of our analysis.†††

Figure 2:† Analysis of Disqualifiers Posting to the Master File
Between January 17 and February 29, 2012

Category

Disqualifiers
IRS Identified

Disqualifiers
TIGTA Sampled

Disqualifiers Programmed Incorrectly

Entity

20

14

2

Tax Module Freeze

14

13

0

Tax Module Transaction

† 9

† 7

0

Incoming Transactions

65

55

1

Total

108

89

3

Source:† Treasury Inspector General for Tax Administration (TIGTA) analysis of Master File data posted from January 17 through February 29, 2012.

We discussed our concerns with three disqualifiers with IRS management in January and February 2012.† These three disqualifiers related to the taxpayersí zip code, filing location, and a processing code that the IRS uses in its examination program.† The volume of transactions associated with these three disqualifiers was extremely low (these three disqualifiers appeared in only 0.06 percent of the 79 million tax accounts we reviewed).† Despite the low volumes, IRS management agreed that these three disqualifiers were not functioning as intended and indicated they would make programming changes to correct them.

The IRS could improve its verification of daily and weekly processing

The IRS established a process to verify that transactions are posting correctly to the Master File.† However, our analysis of the IRSís verification plan indicates that the IRSís efforts may not be sufficient to identify errors in daily and weekly processing.

The Project Office randomly selected 20 tax accounts and verified that the processing indicator was correctly set as either daily or weekly during the first CADE 2 initialization run.† This same review was performed on an additional 25 tax accounts after the March 2012 CADE 2 initialization. †In addition, the Project Office randomly selected individual tax returns for verification of the accuracy of both daily and weekly processing.† The Project Office verified the accuracy of the processing of 249 individual tax returns between January 31 and April 4, 2012.† The IRS found that the CADE 2 is accurately processing individual tax returns on a daily and weekly basis.

Although our analysis of tax account transactions posting to the Master File between January 17 and February 29, 2012, indicate transactions are correctly posting to the Master File, we are concerned that the IRS verified the accuracy of tax return processing for only a fraction of the approximately 119 million individual tax returns processed through April 30, 2012. †In addition, the IRS did not track which disqualifiers it verified as part of its review.† Unless the IRS verifies at least a limited number of tax accounts that contain each of the identified disqualifiers, it cannot be assured that individual tax account transactions are properly posting to the Master File. †As such, the IRS should consider creating a verification plan to determine if all tax account disqualifiers are accurately identified during processing.† The systemic nature of daily and weekly processing should reduce the number of tax accounts the IRS needs to review.

 

Appendix I

 

Detailed Objective, Scope, and Methodology

 

The overall objective of this review was to evaluate the accuracy of the IRSís implementation of daily tax return processing during the 2012 Filing Season.[6] †This review is included in TIGTAís Fiscal Year 2012 Annual Audit Plan and addresses the major management challenge of Modernization.

To accomplish the objective, we:

I.                 Assessed the IRSís planning efforts to implement daily processing for individual tax returns.

A.    Interviewed IRS management about their process to identify transactions for daily or weekly processing and reviewed CADE 2 documentation and information for transactions used to process individual tax returns.

B.    Evaluated the completeness of the IRSís identification of individual tax return transactions that should be processed weekly.[7] †To do this, we obtained the IRSís list of transactions used to process individual tax returns. †We also reviewed CADE 2 documentation and interviewed IRS program managers to identify transactions associated with the Electronic Fraud Detection System, Accounts Management Taxpayer Assurance Program, Notice Review Program, and Pre-Refund Program. †We then evaluated if the IRS considered all of the transactions for these four program areas and whether the transactions were identified for daily or weekly processing.[8]

C.    Assessed the IRSís efforts to continue to identify tax return transactions that should be processed weekly.

1.     Obtained additional information related to the IRS planned method to add the daily eligible indicator to the tax accounts in December 2011 and March 2012.

2.     Obtained counts of the number of tax accounts that were not able to be processed daily as identified by the computer runs in December 2011 and March 2012.

II.               Evaluated the accuracy of daily and weekly processing of taxpayer accounts during the 2012 Filing Season to determine if tax return transactions are accurately posting to the Individual Master File.

A.    Obtained an extract of tax account transactions that posted each day during January and February 2012 from the Individual Master File.† The extract was created by TIGTAís Data Center Warehouse programmers.† We validated the information received in the data extract by confirming record counts and tracing information to the Integrated Data Retrieval System.†

B.    Ensured that transactions were correctly posting daily and weekly by reviewing the posting dates and the daily eligible indicator.†

III.             Assessed the effectiveness of the IRS process to monitor the accuracy of daily and weekly individual tax return processing during the 2012 Filing Season.† To do this, we interviewed IRS management and reviewed the IRSís plan to validate the accuracy of daily and weekly processing.

Data Validation

To assess the reliability of computer-processed data, programmers in the TIGTA Strategic Data Services Division validated the data that were extracted, and we verified the data with appropriate documentation.† Judgmental samples were selected and reviewed to ensure that the information presented was supported by external sources.†

Internal controls methodology

Internal controls relate to managementís plans, methods, and procedures used to meet their mission, goals, and objectives.† Internal controls include the processes and procedures for planning, organizing, directing, and controlling program operations.† They include the systems for measuring, reporting, and monitoring program performance.† We determined the following internal controls were relevant to our audit objective:† CADE 2 Program criteria for daily or weekly processing of individual tax account data and the Internal Revenue Manuals used by the Wage and Investment Divisionís Submission Processing, Accounts Management, and Return Integrity and Correspondence Services functions to process individual tax returns.† We evaluated the internal controls by interviewing IRS management and conducting tests of the IRSís procedures to ensure daily and weekly processing of individual tax accounts were functioning properly.

 

Appendix II

 

Major Contributors to This Report

 

Michael E. McKenney, Assistant Inspector General for Audit (Returns Processing and Account Services)

Augusta R. Cook, Acting Assistant Inspector General for Audit (Returns Processing and Account Services)

Deann L. Baiza, Acting Director

Sharla J. Robinson, Acting Audit Manager

Sharon A. Buford, Senior Auditor

John L. Hawkins, Senior Auditor

Brian W. Hattery, Information Technology Specialist

 

Appendix III

 

Report Distribution List

 

Commissioner† C

Office of the Commissioner Ė Attn:† Chief of Staff† C

Deputy Commissioner for Services and Enforcement †SE

Deputy Commissioner, Services and Operations, Wage and Investment Division †SE:W

Director, Customer Account Services, Wage and Investment Division† SE:W:CAS

Director, Return Integrity and Correspondence Services, Wage and Investment Division† SE:W:RICS

Director, Strategy and Finance, Wage and Investment Division† SE:W:S

Chief, Program Evaluation and Improvement, Wage and Investment Division† SE:W:S:PEI

Director, Accounts Management, Wage and Investment Division† SE:W:CAS:AM

Director, Submission Processing, Wage and Investment Division† SE:W:CAS:SP

Chief Counsel† CC

National Taxpayer Advocate† TA

Director, Office of Legislative Affairs† CL:LA

Director, Office of Program Evaluation and Risk Analysis† RAS:O

Office of Internal Control† OS:CFO:CPIC:IC

Audit Liaison:† Chief, Program Evaluation and Improvement, Wage and Investment Division †SE:W:S:PEI

 

Appendix IV

 

Glossary of Terms

 

Term

Definition

Accounts Management Taxpayer Assurance Program

The primary focus of this program is revenue protection.† Under it, employees screen, verify, and stop refunds reported on questionable or potentially fraudulent returns; for example, returns filed by prisoners or identity thieves.

Calendar Year

The 12-consecutive-month period ending on December 31.

Electronic Fraud Detection System

A stand-alone automated system that detects reliable indicators of potential taxpayer fraud at the time individual tax returns are filed. †It also provides employees with tools needed to perform pre-refund detection activities, e.g., screening returns and verifying income and withholding information, and to stop the issuance of refunds for potentially fraudulent tax returns.

Entity

The portion of the Master File record that identifies the taxpayer.† It contains the name, address, and Social Security Number or Employer Identification Number.

Filing Season

The period from January through mid-April when most individual income tax returns are filed.

Individual Master File (Master File)

The IRS database that maintains transactions or records of individual tax accounts.

Integrated Data Retrieval System

IRS computer system capable of retrieving or updating stored information.† It works in conjunction with a taxpayerís account records.

Internal Revenue Manual

A document containing the policies and procedural guidance for IRS operations.

Notice Review Program

A program that helps ensure taxpayers receive complete and correct information from the IRS and do not receive an erroneous refund.† Under this program, notices are selected and reviewed with the goal of improving both the accuracy and quality of information sent to taxpayers.

Pre-Refund Program

A program that provides coordination of pre-refund compliance activities to ensure timely issuance of refunds and credits that are legally due to filers, while preventing issuance of refunds and credits that are not legally due to filers.† A return is said to be pre-refund if the refund can be stopped, has been stopped, or has been offset to another obligation.

Processing Year

The calendar year in which the tax return or document is processed by the IRS.

Tax Module

A specific year and type of return within a taxpayerís account; all tax modules combined comprise a taxpayerís account.

Underreporter

The Automated Underreporter Program matches items reported on an individualís income tax return to information supplied to the IRS from outside sources (such as from employers, banks, and credit unions) to determine if the taxpayerís tax return reflected the correct amounts.

 



[1] See Appendix IV for a glossary of terms.

[2] See Appendix IV for a glossary of terms.

[3] Government Accountability Office (formerly known as the General Accounting Office), GAO-12-165, FINANCIAL AUDIT, IRSís Fiscal Years 2011 and 2010 Financial Statements (Nov. 2011).

[4] Processing codes could include any of the various transaction codes, resequencing codes, notice codes, or other characteristics in a taxpayerís account.†

[5] A judgmental sample is a nonstatistical sample, the results of which cannot be used to project to the population.

[6] See Appendix IV for a glossary of terms.

[7] We were only concerned with weekly transactions because an erroneous refund could occur if a transaction that should be processed weekly was incorrectly processed daily.

[8] There is a greater possibility of erroneous refunds in these four programs.