GAO: IRS Needs Better Control of Modernization

The Internal Revenue Service has adequately used appropriations for its business systems modernization program, but it still needs to improve controls over the program, a Government Accounting Office report released Aug. 17 announced.

The report, "Results of Review of IRS Spending for Business Systems Modernization," is the product of a GAO study of IRS expenditures for fiscal 1999 and 2000, relating to its business systems modernization program.

"There were no instances we identified in which IRS internal controls failed to assure that expenditures against (Information Technology Investment Account) appropriations were for business systems modernization. However, we recently reported that, despite important progress, IRS has yet to fully implement the capabilities needed to effectively manage the business systems modernization program," the report said, referring to a May 8 GAO report, "IRS Modernization: Continued Improvement in Management Capability Needed to Support Long-Term Transformation."

That report voiced concerned over projects that were proceeding past critical milestones without certain management controls in place.

GAO was tasked by the Senate and House appropriations subcommittees to determine if IRS used Information Technology Investment Account appropriations only to fund its business systems modernization costs, to determine to what extent other appropriations were used for modernization, and to review internal controls over this account.