Office of Audit
STATUS OF THE IMPLEMENTATION OF THE FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT ACT
Final Report issued on July 26, 2019
Highlights of Reference Number:† 2019-10-051 to the Commissioner of Internal Revenue.
IMPACT ON TAXPAYERS
The Federal Financial Management Improvement Act (FFMIA) remediation plan is an important part of the IRSís efforts to bring its financial management systems into compliance with the FFMIA and to provide reliable and timely financial data.† Complete and reliable financial 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
The overall objectives of this review were to determine any instances of and reasons for missed intermediate target dates established in the IRSís September 30, 2018, FFMIA remediation plan and to determine whether the IRS has taken adequate corrective actions on TIGTAís prior audit findings related to the Fiscal Year 2017 remediation plan.
WHAT TIGTA FOUND
During Fiscal Year 2018, the IRS made progress addressing a long-standing material weakness in its internal controls over unpaid assessments.† For example, the IRS completed four of the 12 open remediation actions related to internal control weaknesses.† IRS management also approved the extension of one open remediation action to a future date.† This open remediation action and seven other actions have expected completion dates between Fiscal Year 2019 and Fiscal Year 2021.† In addition, the IRS also included all six open Government Accountability Office recommendations in its remediation plan as required.† However, the IRS still does not include resource cost information for each corrective action in accordance with Federal and internal requirements.
In November 2018, the Government Accountability Office downgraded the IRSís material weakness over unpaid assessments to a significant deficiency due to the IRSís progress in addressing the control weaknesses that affect its financial reporting.† Federal agencies with a material weakness over internal controls are required to report externally on the actions taken to address the weakness.† While external reporting is no longer required, the Office of Management and Budget requires the IRS to internally assess its progress in addressing the significant deficiency over unpaid assessments.
WHAT TIGTA RECOMMENDED
TIGTA did not make any recommendations in this report.
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