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The Research Program has a comprehensive annual strategic planning process that iscustomer-driven and includes annual goals for producing timely, relevant, accurate, anduseful products. While the annual planning and related goals will help ensure andgauge the quality of the Research Program, more can be done to ensure the ResearchProgram selects the most productive research projects. Specifically,
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Improvements are needed to ensure annual goals are being met. Current guidelinesneither require assurance that accuracy reviews of project results have beenperformed nor include an effective process to obtain feedback from the customers todetermine the usefulness or value of the final research projects.
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Long-term performance goals and measures are needed. The IRS has notdeveloped results-oriented, long-term goals and measures for the ResearchProgram because it does not have a process to monitor and measure progress onimproving customer service and voluntary compliance for W&I Division taxpayers.However, Research Program management is working toward developing thesegoals and measures.
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A centralized management information system is needed. The Research Programhas not fully implemented a centralized management information system to trackand monitor its projects. It is working toward implementing a new centralizedsystem; however, the new system does not allow management to easily monitor andtrack project costs to assess the cost-effectiveness of the Research Program.We recommended the W&I Division Commissioner ensure the Research Programguidelines are revised to require documentation supporting the performance of anaccuracy review or explaining why a review was not warranted, and develop aneffective process to measure the usefulness of the research products. We alsorecommended the W&I Division Commissioner ensure long-term goals and ameasurement process are developed to monitor the effect the Research Program hason improving tax administration, and implement a centralized management informationsystem to enable the efficient tracking and monitoring of all aspects of a researchproject.Management’s Response: IRS management agreed with all of our recommendationsand is taking corrective action. Specifically, the W&I Division Research Program willrevise guidance to require maintaining documentation supporting the performance ofaccuracy reviews, establish a system to assess the usefulness of its research products,establish long-term goals and measures, and implement the Microsoft Project 2002
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system to centrally manage resources and projects. Management’s complete responseto the draft report is included as Appendix IV.Copies of this report are also being sent to the IRS managers affected by the reportrecommendations. Please contact me at (202) 622-6510 if you have questions orMichael R. Phillips, Assistant Inspector General for Audit (Wage and Investment IncomePrograms), at (202) 927-0597.
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