INDEPENDENT ATTESTATION REVIEW OF THE INTERNAL REVENUE SERVICEíS
FISCAL YEAR 2015 ANNUAL ACCOUNTING OF DRUG CONTROL
FUNDS AND RELATED PERFORMANCE
Final Report issued on January 15, 2016
Highlights of Reference Number:† 2016-10-014 to the Internal Revenue Service Chief Financial Officer and Chief, Criminal Investigation.
IMPACT ON TAXPAYERS
TIGTA reviewed the assertions in the IRSís Office of National Drug Control Policy (ONDCP) Detailed Accounting Submission and Performance Summary Report for Fiscal Year 2015.† IRS management is responsible for preparing the report.
The IRS supports the National Drug Control Strategy through its continued support of the Organized Crime Drug Enforcement Task Force.† Complete and reliable financial and performance information is critical to the IRSís ability to accurately report on the results of its operations to both internal and external stakeholders, including taxpayers.
WHY TIGTA DID THE AUDIT
This review was conducted as required by the ONDCP and ONDCP Circular:† Accounting of Drug Control Funding and Performance Summary, dated January 18, 2013.† The National Drug Control Program agencies are required to submit to the Director of the ONDCP, not later than February 1 of each year, a detailed accounting of all funds expended (the ONDCP Circular requires amounts obligated) during the previous fiscal year.† Agencies also need to identify and document performance measures that show the results associated with these expenditures.† Further, the ONDCP Circular requires that each report be provided to the agencyís Inspector General for the purpose of expressing a conclusion about the reliability of each assertion made in the report prior to its submission.†
WHAT TIGTA FOUND
Our review indicated that the IRS asserted that the methodology used to establish its performance targets (completed cases, convictions, and conviction rate) for the current year is reasonable given its past performance and is consistent with its documented policy on developing performance targets.† However, TIGTA found that although the IRS did marginally increase its targets for Fiscal Year 2016 in all three target areas, the new goals are not consistent with its documented methodology that requires the goals to be based on an average of actual performance.† For example, the IRS only raised its Fiscal Year 2016 performance targets for convictions to 500 and the conviction rate to 86 percent, although the three-year average of actual convictions was 589 and the three-year average conviction rate was 90 percent.
Otherwise, based on our review, nothing came to our attention that caused us to believe that the assertions in the Detailed Accounting Submission and Performance Summary Report are not fairly presented in all material respects in accordance with the ONDCPís established criteria.
WHAT TIGTA RECOMMENDED
TIGTA recommended that the Chief, Criminal Investigation, develop future performance goals that are consistent with the IRSís documented methodology and clearly explained in the Detailed Accounting Submission and Performance Summary Report.†
IRS management reviewed a draft version of the report and stated that they agreed with and plan to implement the recommendation.
READ THE FULL REPORT
To view the report, including the scope, methodology, and full IRS response, go to:
Phone Number ††/† 202-622-6500
E-mail Address †/† TIGTACommunications@tigta.treas.gov
Website†††††† ††††††/† https://www.treasury.gov/tigta