Federal Manager's Daily Report

The Internal Revenue Service has taken the General

Accounting Office’s advice to implement management


controls, deliver certain business applications and

balance the pace of its attempts to modernize with

management capabilities, but significant challenges and

serious risks remain, the General Accounting Office has


It said IRS needs to strengthen the management of its

business system modernization program by implementing

and institutionalizing management processes and controls

for cost and schedule estimating.

In an earlier report GAO said IRS inadequately defines

system requirements, sometimes increases the scope of

its projects in mid-execution and underestimates project

complexity, and that such deficiencies impair its ability

to make systems investment decisions and operate efficiently.

GAO recommended continued oversight from Congress and the

Office of Management and Budget as well as ongoing

independent assessments of the BSM program.

IRS responded to GAO’s latest assertions by identifying 46

issues to be resolved, 27 of which it says have been completed.