Office of the Chief Financial Officer

Executive Summary for Closed Reports

Status Updated as of March 4, 2014

Original Report

Report No. OIO-13-01-07-OTR : Audit of Internal Controls over OTR's Compliance Administration's Adjustment of Taxpayer Accounts, dated August 14, 2013.

Current Status

Closed. 

Chief Risk Officer’s Risk Assessment

The inherent risk associated with the access to and manipulation of taxpayers’ accounts is High.  Inappropriate access and use of the system has been identified as a root cause for potential fraud risks.  Therefore, particular attention is paid all recommendations from OIO.

Overview of Recommendations

OIO offered five recommendations, and all five recommendations have been implemented.

• Management will issue a memorandum to reinforce the policies and procedures related to the completion of the Adjustment Request Form.  Requesting employees and managers within the division will be directed to complete request forms accurately and obtain all necessary approvals prior to submission.  Adjusters will be instructed to reject any adjustment request for that are not completed and properly approved.  Reviewers will be reminded to sign all completed and approved adjustments.  The policy will be updated in the Unit's desk guide.  The anticipated date of completion for these corrective actions is 9/30/13.  09/30/13: Compliance issued the email directive on 9/30/13.
• Management will issue a memorandum to the other OTR administrations notifying them of Compliance's updated policy requiring all adjustment requests to be accompanied by a completed Adjustment Request Form, regardless of type or origin.  The policy will be updated in the Unit's desk guide.  The anticipated date of completion for these corrective actions is 9/30/13.  9/30/13: Compliance issued the email directive on 9/30/13 and Adjustment Desk Unit Guide expanded.
• Management will review a sample of post-October 1, 2011 transactions for accuracy and legitimacy to determine if a more extensive review is necessary.  The anticipated date of completion for the initial review is 12/31/13.  12/31/13: Review completed. 
• The Adjustment Unit Manager will meet with the Clerical Assistant as well as those individuals who serve in a support capacity in her absence to reiterate the importance of accuracy and completeness when logging adjustment details.  The anticipated date of completion for these corrective actions is 9/30/13.  9/30/13: Meeting held and Adjustment Desk Unit Guide expanded.
• Management will have the Chief Risk Officer add an Inventory Log Review control test to the quarterly tests performed by Compliance.  The anticipated date of completion for all corrective actions is 9/30/13.  9/30/13: Inventory Log Review Control added. 

To view the full report, click Audit of Internal Controls Over OTR's Compliance Administration's Adjustment of Taxpayer Accounts.