OFFICE OF INSPECTOR GENERAL

DEPARTMENT OF HOMELAND SECURITY

Washington, DC 20528 /www.oig.dhs.gov

 

 

December 11, 2015

 

 

 

The Honorable J. Russell George

Inspector General

Treasury Inspector General for Tax Administration

1401 H Street, NW Washington, DC  20005

 

Dear Mr. George:

 

We have reviewed the system of quality control for the audit organization of Treasury Inspector General for Tax Administration (TIGTA) in effect for the year ended March 31, 2015.  A system of quality control encompasses TIGTA's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of conforming with Government Auditing Standard.sl.  The elements of quality control are described in Government Auditing Standards.  TIGTA is responsible for establishing and maintaining a system of quality control that is designed to provide TIGTA with reasonable assurance that the organization and its personnel comply with professional standards and applicable legal and regulatory requirements in all material respects.  Our responsibility is to express an opinion on the design of the system of quality control and TIGTA's compliance therewith based on our review.

 

Our review was conducted in accordance with Government Auditing Standards and the Council of the Inspectors General on Integrity and Efficiency Guide for Conducting Peer Reviews of the Audit Organizations of Federal Offices of Inspector General.  During our review, we interviewed TIGTA personnel and obtained an understanding of the nature of the TIGTA audit organization, and the design of TIGTA's system of quality control sufficient to assess the risks implicit in its audit function.  Based on our assessments, we selected audits and administrative files to test for conformity with professional standards and compliance with TIGTA's system of quality control.  The audits selected represented a reasonable cross-section of TIGTA's audit organization, with emphasis on higher-risk audits.  Prior to concluding the peer review, we reassessed the adequacy of the scope of the peer review procedures and met with TIGTA management to discuss the results of our review.  We believe that the procedures we performed provide a reasonable basis for our opinion.

 

 

1 Issued by the Comptroller General, December 2011

 

In performing our review, we obtained an understanding of the system of quality control for the TIGTA audit organization.  In addition, we tested compliance with TIGTA's quality control policies and procedures to the extent we considered appropriate.  These tests covered the application of TIGTA's policies and procedures on selected audits.  Our review was based on selected tests; therefore, it would not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance.

 

There are inherent limitations in the effectiveness of any system of quality control, and, therefore, noncompliance with the system of quality control may occur and not be detected.  Projection of any evaluation of a system of quality control to future periods is subject to the risk  that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate.

 

Enclosure 1 to this report identifies the TIGTA offices that we visited and audits that we reviewed.

 

In our opinion, the system of quality control for the audit organization of TIGTA in effect for the year ended March 31, 2015, has been suitably designed and complied with to provide TIGTA with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.  Audit organizations can receive a rating of pass, pass with deficiencies, or fail.  TIGTA has received an External Peer Review rating of pass.  As is customary, we have issued a letter dated December 11, 2015 that sets forth findings that were not considered to be of sufficient significance to affect our opinion expressed in this report.

 

Sincerely,

 

     /s/ John Roth

 

John Roth

             Inspector General

 

 

 

Enclosures

 

ENCLOSURE 1

 

SCOPE AND METHODOLOGY

 

We tested compliance with TIGTA audit organization's system of quality control to the extent we considered appropriate.  These tests included a review of 8 of 88 audit reports issued during the period April 1, 2014, through March 31, 2015.  We also reviewed an audit report that had an internal quality control review completed by TIGTA.  Lastly, we visited TIGTA offices located in Washington, DC and Denver, CO.

 

Selected Audit Reports Performed by TIGTA

 

Report No.

Report Date

Report Title

2014-10-073

09/29/2014

Controls Over Outside Employment Are  Not Sufficient to Prevent or  Detect Conflicts of Interest

2015-10-006

12/30/2014

Additional Consideration of Prior Conduct and Performance Issues Is Needed When Hiring Former Employees

2014-20-088

09/29/2014

The  Information Reporting and Document Matching Case Management System Could Not Be Deployed

2014-23-072

09/29/2014

Affordable Care Act: Improvements Are  Needed to Strengthen Security and Testing Controls for  the Affordable Care Act Information Returns Project

2014-30-067

09/26/2014

Additional Actions Are Needed to Ensure That Improper Fuel Tax Credit Claims Are Disallowed

2014-30-080

09/18/2014

Declining Resources Have Contributed to Unfavorable Trends in  Several Key Automated Collection System Business Results

2014-40-058

09/03/2014

Processes Are Needed to More Effectively Address Potentially Erroneous Excess Social Security Tax Credit Claims

2014-40-093

09/29/2014

Existing Compliance Processes Will Not Reduce the Billions of Dollars in Improper Earned Income Tax Credit and Additional Child Tax Credit Payments

Audit  Report Processed through TIGTA's Internal Quality Assurance Review

2014-10-007

03/21/2014

The Awards Program Complied with Federal Regulations, but Some Employees with Tax  and Conduct Issues Received Awards

 

 

ENCLOSURE 2

 

 

 

 

DEPARTMENT OF THE TREASURY

WASHINGTON, D.C. 20005

 

INSPECTOR GENERAL

            FOR TAX

   ADMINISTRATION

 

 

December 7, 2015

 

 

 

The Honorable John Roth

Inspector General

Department of Homeland Security

245 Murray Lane, SW. Washington, D.C. 20528

 

Dear Mr. Roth:

 

Thank you for the opportunity to comment on your November 23, 2015 draft external peer review report of the Treasury Inspector General for Tax Administration. We are pleased to receive a peer review rating of pass.  We appreciate the review team's periodic briefings on their review results and the opportunity to discuss our questions and perspective on their preliminary findings.

 

We are firmly committed to maintaining an effective system of quality controls and work continuously to improve our operationsWe have provided a separate response to the findings and recommendations outlined in your Letter of Comment.

 

If you have any questions regarding the response, please contact Michael E. McKenney, Deputy Inspector General for Audit, at (202) 622-5916.

 

 

Sincerely,

 

                /s/ J. Russell George

 

            J. Russell George

            Inspector General