Office of Audit
THE AFFORDABLE CARE ACT CASE MANAGEMENT SYSTEM RELEASE 1.0
Final Report issued on August 30, 2016
Highlights of Reference Number: 2016-23-066 to the Internal Revenue Service Chief Information Officer.
IMPACT ON TAXPAYERS
The Affordable Care Act (ACA) includes provisions that impose penalties, administered through the tax code, for businesses that do not obtain health coverage for their employees. Starting in the 2015 Filing Season, employers with 50 full-time employees, or a combination of full-time and part-time employees that is equivalent to 50 full‑time employees, are subject to the Employer Shared Responsibility Payment provisions. The IRS will provide the ACA Case Management–Case Management (ACM) system that allows IRS employees to create, manage, and track the status of Employer Shared Responsibility Payment compliance cases to ensure employer compliance.
WHY TIGTA DID THE AUDIT
The overall objective was to determine whether the ACM Project Management Office adequately managed risks that may delay the ACM system from being deployed in January 2017.
WHAT TIGTA FOUND
The IRS currently maintains approximately 90 separate case management systems. Case management is the process that addresses the resolution of tax administration issues through the management of case creation, execution, maintenance, and closure. Entellitrak is the IRS’s Enterprise Case Management tool. An analysis of Entellitrak determined that it appears to meet the case management needs of the ACM system. The IRS identified 77 ACM capabilities and determined that 35 are available in the Enterprise Case Management System. The remaining 42 capabilities are unique to the ACM system and were planned to be developed by the ACM project.
In addition, the IRS implemented a change management process to ensure that the ACM system aligns with the Enterprise Case Management system requirements. The change management process involves determining the type of request being made to change an IRS information technology system, which in turn determines the path used to decide whether the change will be approved.
Also, the ACM team monitored potential risk involving interfacing systems. One interfacing system may not be completed by January 2017. ACM management had several discussions on this risk. ACM management planned to continue monitoring the risk in view of the pending decisions for ACA 7.1 release scope.
At the end of the audit, TIGTA obtained documentation that shows the Information Technology ACA Program Governance Board approved, on June 7, 2016, a request to close the ACM project and transfer its functional components and documentation to the Enterprise Case Management Program Management Office.
WHAT TIGTA RECOMMENDED
TIGTA made no recommendations in this report. IRS officials reviewed the report and agreed with the facts presented.
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