Auditors say IRS is on top of business systems development costs

Auditors typically uncover a list of problems in their investigations of agency projects. But in the case of the IRS' business systems development organization, they came up empty.

Instead, the Treasury inspector general for tax administration said the IRS effectively managed its contractors and verified related costs last year. 'Because the BSD organization effectively monitored contractor performance and managed contract labor and related costs, we are making no recommendations in this report,' said Michael Phillips, TIGTA deputy inspector general for audit, in the report released Friday.

The business systems development organization within the Modernization and IT Services builds, tests and maintains integrated applications systems and depends on contractors for management, professional support and data processing services.

The IRS budgeted $144 million last year for contractor support of the business systems development organization, about 39 percent of the organization's $370 million fiscal 2005 spending.

TIGTA evaluated the Integrated Submission and Remittance Processing system, which prepares tax return data for input into other systems; the Service Center Recognition/Image Processing System, which captures data by reading printed bar codes if present or by character recognition of the data on certain tax forms; and the Product Assurance Technical Support for Systems Acceptability Testing/Final Integration Test, which tests systems or programs to ensure that they meet objectives.

About the Author

Mary Mosquera is a reporter for Federal Computer Week.

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