Office of Audit
INDEPENDENT ATTESTATION REVIEW OF THE
INTERNAL REVENUE SERVICE’S FISCAL YEAR 2018
ANNUAL ACCOUNTING OF DRUG CONTROL FUNDS AND RELATED PERFORMANCE
Final Report issued on February 26, 2019
Highlights of Reference Number: 2019-10-020 to the Commissioner of Internal Revenue.
IMPACT ON TAXPAYERS
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 IRS’s ability to accurately report on the results of its operations to both internal and external stakeholders, including taxpayers.
IRS management is responsible for preparing the annual Office of the National Drug Control Policy (ONDCP) Detailed Accounting Submission and Performance Summary Report. TIGTA reviewed the assertions in the IRS’s Fiscal Year 2018 report.
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 May 8, 2018. 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 must also identify and document performance measures that show the results associated with these expenditures.
Further, the ONDCP Circular requires that the agency provide the report to the agency’s Inspector General prior to its submission for the purpose of expressing a conclusion about the reliability of each assertion made in the report.
WHAT TIGTA FOUND
TIGTA identified significant variances reported between IRS actual results and its performance goals. The IRS asserted that the explanation provided in the Fiscal Year 2018 Detailed Accounting Submission and Performance Summary Report for not meeting its performance goals (i.e., completed cases, convictions, conviction rate) were reasonable. However, the IRS was unable to provide any analysis supporting its explanation. As such, TIGTA was unable to determine if the IRS assertions are reliable.
Additionally, the ONDCP Circular requires an agency to provide a description of its plans and schedules for meeting future goals if any performance goal for the most recent fiscal year was not met. TIGTA found that the IRS did not include this information in its report.
With the exception of the concerns identified above, 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 ONDCP’s established criteria.
WHAT TIGTA RECOMMENDED
TIGTA recommended that the Chief, Criminal Investigation, analyze the causes of any significant variances between the performance goals and actual accomplishments. In addition, the ONDCP assertions should be based on this analysis and include a detailed explanation. Finally, a description of the IRS’s plans and schedules for meeting future goals should be included in the Detailed Accounting Submission and Performance Summary Reports when the most recent fiscal year goals are not met.
In their response, IRS management agreed with 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
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