CHAPTER 300 - AUDITING

(300)-120 [Management Information System]{.underline}

120.1 [Overview]{.underline}.

The objective of the TeamCentral Management Information System (TCMIS)
is to provide Office of Audit (OA) management with information essential
to the effective management and oversight of audit programs and
activities.

The TCMIS replaced the former Inspector General for Audit Management
Information System with an integrated suite of TeamMate applications.
The TCMIS uses TeamSchedule, TeamStores, and TeamMate to maintain
project profiles and exception data on a global MIS database.
Information available through the TCMIS includes, but is not limited to:

-   Audit and project status, profile and milestone information.

-   Audit and project content and background.

-   Audit and project exceptions, both in development and reportable.

-   A snapshot of current and prior fiscal year OA program(s) progress.

-   Time expended on audits and projects.

-   Time expended on training and Continuing Professional Education
    (CPE) credits earned.

The TCMIS provides management with timely and meaningful project
information, easy accessibility, and less administrative overhead. The
MIS administrative processes are greatly reduced for both front-line
managers and MIS staff by leveraging the integrated features of the
TeamMate suite. The TCMIS is also a resource for data mining, planning,
risk management, and front-loading future audit coverage.

To manage and fully utilize the TCMIS, business processes are
standardized and integrated across all OA business units.
Organization-wide procedural controls and related policies have also
been established for all business units.

120.2 [TeamCentral Management Information System Roles and
Responsibilities]{.underline}.

-   The TeamSchedule Database Administrator (DBA) in the Office of
    Management and Policy (OMP) will:

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-   Manage all user accounts, team resources, and related access
    privileges.

-   Setup and populate the global database with all planned audits
    identified from the Annual Audit Plan each fiscal year.

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-   Maintain the TeamSchedule inventory throughout the fiscal year by
    adding or creating new projects, canceling or deferring projects,
    and scheduling projects for creation by OA staff.

-   Provide basic output and reporting products and services for the web
    and SQL database.

-   Oversee database administration, data accuracy, and integrity and
    coordinate data entry input by OA MIS Business Unit Coordinators.

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-   The MIS Business Unit Coordinators will:

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-   Monitor overall data accuracy and timeliness of Business Unit MIS
    information.

-   Maintain secure controls over key milestone and contract data
    entries.

-   Assist Audit Managers as needed and coordinate with staff
    assistants.

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-   The Audit Managers (or designees) will:

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-   Begin projects by sending a Project Initiation request to the
    TeamSchedule DBA via the OA public mailbox \****TIGTA Audit
    TeamSchedule or TeamSchedule@tigta.treas.gov*** with a standard
    Outlook template.

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-   Create audit projects in TeamMate by downloading from the
    TeamSchedule Planning Database. The project profile will be imported
    during this process.

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-   Import and assign audit teams to the project using TeamStores and
    update the project profile and exception data on a bi-weekly basis
    or more frequently as necessary.

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-   Immediately publish the audit's project profile on the TeamCentral
    MIS database.

-   Finalize the audit file after issuance of the final report.

-   Ensure team members timely and accurately input project, training,
    and administrative time and expenses into the Time and Expense
    Capture (TEC) file.

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-   The OA staff will:

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-   Charge time to projects as soon as the project profile has been
    established on TeamCentral.

-   Keep project time and expense updated on a monthly basis with
    managerial review.

In addition, pre-defined TCMIS numbers are set at the beginning of each
fiscal year for selected direct and indirect time categories and are
communicated in a Deputy Inspector General for Audit (DIGA) Memorandum.
Pre-defined indirect time numbers are provided in [**Exhibit
(300)-120.1**](../chapter300-120.doc#ExhibitPredefinedNumbers).

The audit/project numbering schema consists of a nine-digit audit number
with the first four digits representing the fiscal year in which the
audit/project was initiated. The next two digits identify the business
unit responsible for the audit/project or any other type of audit
identifier that may be needed by the business unit. The final three
digits represent the sequential number of the audit/project within each
business unit. An example of a TCMIS number is 2009-20-001, which
represents the first audit assigned (001) in the Security and
Information Technology Services (20) in Fiscal Year 2009. Defense
Contract Audit Agency (DCAA) and Inspection and Evaluation audit numbers
will have ten digits in the filename to distinguish these audits from
others done in their business units.

The business unit designations for TCMIS are:

-   Management Services and Exempt Organizations (MSE) -- 1.

-   Security and Information Technology Services (SIT) -- 2.

-   Compliance and Enforcement Operations (CEO) -- 3.

-   Returns Processing and Account Services (RPA) -- 4.

    The OMP uses the designation IGP -- P.

TCMIS data are a critical source of the OA's input for the Inspector
General's monthly Performance Data Report. Project updates are required
biweekly and employee time and expense input must be submitted by the
end of each calendar month or as directed by the OMP. Employees will be
required to estimate their time when earlier due dates are required.

[]{.mark}

120.3 [Procedures for Maintaining the TeamSchedule
Inventory]{.underline}.

At the end of each fiscal year, TeamSchedule will be populated with all
audit projects planned for the next fiscal year. The starting point for
the annual inventory will be the OA Annual Audit Plan. New audits that
were not included in the initial fiscal year plan will be added to
TeamSchedule by the TeamSchedule DBA.

The following steps will be followed to develop and maintain the
TeamSchedule audit/project inventory:

-   All Directors will submit the Annual Audit Plan information to the
    TeamSchedule DBA. The DBA will import and update staff data in the
    TeamSchedule (OA Resources) and import all audits from the Annual
    Audit Plan.

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-   All project profiles will be created and updated in TeamSchedule
    with initial profile data prior to project initiation. The
    TeamSchedule Admin updates/modifies profile labels (TeamSchedule
    Categories) in TeamSchedule, as necessary.

120.3.1 [Project Initiation Requests]{.underline}. Scheduling of
projects will occur immediately after Project Initiation requests are
submitted to the TeamSchedule DBA. Requests to start audits will be
submitted by the Audit Manager (or designee) via email only and will be
maintained. A copy will also be provided to his or her respective MIS
Business Unit Coordinator. The OA Project Initiation Request template
can be found in Outlook under *File/New/Choose Form/OA Project
Initiation Request.*

The TeamSchedule DBA will update audit profiles and resources (team
members) as necessary. The DBA will also schedule audit(s) and designate
the Audit Manager and Lead Auditor. The Audit Manager and Lead Auditor
will receive a system-generated email notification when the audit is
scheduled and ready for creation.

120.3.2 [Establishing the TeamMate File on the TeamCentral
MIS]{.underline}. The initiation of audits will be performed by
downloading directly from the TeamSchedule planning database into
TeamMate. The Audit Manager (or designee) will:

-   Select or import a scheduled audit from the TeamSchedule Planning
    Database into TeamMate.

-   Import all team members from TeamStore and update required roles.

-   Verify Project Profile field validity (e.g., Audit Manager, Lead
    Auditor, Director, Business Unit, etc.)

The profile will be published on TeamCentral immediately after the audit
is created and the profile is updated in TeamMate.

The Audit Manager (or designee) will send the project profile to
TeamCentral and update the Summary Tab (narrative) biweekly thereafter.
This also establishes the record on the MIS Milestone Table. The MIS
Coordinator, Audit Manager, and Lead Auditor will be notified with a
system-generated email confirmation when an audit is published on
TeamCentral. The audit will then be available on the TEC. The MIS
Coordinator will update the MIS Milestone Table with the major
management challenge area and the actual planning start date fields.

120.3.3 [Project Milestones and Project Updates]{.underline}. The Audit
Manager or the Director will submit a copy of the audit plan to the MIS
Coordinator with the following data: contract staff days; contract
calendar days; contract draft report date, and the audit plan signature
date. The MIS Coordinator will update the MIS Milestone Table with these
fields.

-   The Audit Manager (or designee) will update the Audit Profile
    (narrative summary) and any exceptions on a [bi-weekly]{.underline}
    basis. Exceptions will also include all "potentially reportable"
    items. The narrative summary entries should be a concise paragraph
    (approximately 2-3 sentences) and include the date and the author.

-   The MIS Coordinator will update the MIS Milestone Table when
    contract fields are changed and approved. The Audit Manager will
    forward all approved changes to contract fields (calendar days,
    staff days, and estimated draft report date) to his or her MIS
    Coordinator via email. Special forms will not be necessary.

-   The Audit Manager will update the estimated draft report and the
    estimated final report fields when the estimated draft report varies
    from the approved contract date.

The Audit Manager (or designee) will inform the MIS Business Unit
Coordinator via email of the message conference date. The Coordinator
will update the MIS Milestone Table field with the actual field work
end/report start date.

The Audit Manager will:

-   Send to the MIS Coordinator via email the draft report package when
    the draft report is issued. The Coordinator will update the MIS
    Milestone Table field with the actual draft report date.

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-   Inform the MIS Coordinator via email of the management response
    date. The Coordinator will update the MIS Milestone Table with this
    date.

-   Send the MIS Coordinator an email containing the final report
    package and indicate the final report date. The Coordinator will
    update the MIS Milestone Table field with this actual date.

120.3.4 [Audit Finalization]{.underline}. The Audit Manager, Lead
Auditor, or designee will:

-   Update the Audit Profile with the final outcome measure and final
    narrative (Summary Tab).

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-   Update all reported and potentially reportable exceptions.

-   Finalize the Audit Profile, approve work papers, coaching notes,
    etc., and finalize the Master Audit File (Read Only).

-   Send the final update to TeamCentral.

-   Inform the MIS Coordinator via email that the audit has been
    finalized and will no longer be updated.

The MIS Coordinator will update the report number and report title on
the MIS Milestone Table upon notification from the Audit Manager that
the audit project has been finalized. The Coordinator will also send an
email informing the audit team that the audit has been closed and will
update the report number and title with the respective MIS status code
and remarks when projects are closed or suspended.

**[Exhibit (300)-120.2](../chapter300-120.doc#ExhibitProjectProfile)**
contains a schedule showing the MIS Project Profile and Data Elements in
TeamSchedule.

120.4 [TCMIS Code Definitions]{.underline}.

The TCMIS uses a variety of codes to track the use of audit resources
and convey detailed information about each audit or project. Many of
these codes may change annually based on our audit emphasis.

120.4.1 [Codes Used for Special Audit Projects]{.underline}. Although
most of the TCMIS codes are self-explanatory, the following are the
codes that require more definition to ensure that each office uses these
codes consistently:

-   ***IG Management*** -- These codes should be used only by Audit
    Managers.

-   200xM01 Administrative Duties.

-   Employee evaluations.

-   Reviewing time reports.

-   Reviewing and approving vouchers.

-   200xM02 Staff Development.

-   Mock interviews.

-   Career counseling.

-   ***Executive Supervision*** (200xE01) -- This code should be used
    only by Directors.

-   ***Congressional Testimony*** (200xN11.Txx) -- For reporting staff
    time devoted to testimonies, the audit numbering scheme will be
    200xN11.Txx. The first four digits reflect the fiscal year, the next
    three digits signify the project as a Congressional activity, the
    "T" identifies the activity as the Congressional testimony, and the
    final two digits reflect the sequential numbering of each fiscal
    year's testimony. Requests for the next sequential testimony-related
    TCMIS number should be forwarded to the TCMIS DBA. Examples of the
    testimony numbering include:

-   **200xN11.T01** - Inspector General Testimony Before the House
    Appropriations Committee, Subcommittee on Treasury, Postal Service,
    and General Government.

-   **200xN11.T02** - Inspector General Testimony Before the
    Subcommittee on Oversight, Committee on Ways and Means, U.S. House
    of Representatives.

-   **200xN11.T03** - Inspector General Testimony: Joint Hearing Before
    Committees of the U.S. Senate and the U.S. House of Representatives.

-   ***Congressional Response Products*** (200xN11.CRxx) -- This code
    should be used to capture the time expended on responses to
    Congressional inquiries that do not result in an audit report. This
    coding allows for differentiation among the various Congressional
    responses. The first four digits reflect the fiscal year; the next
    three digits signify this project as a Congressional activity; the
    "CR" identifies the activity as the Congressional response; and the
    final two digits reflect the sequential numbering of each fiscal
    year's Congressional responses. Requests for the next sequential
    Congressional response-related TCMIS number should be forwarded via
    electronic mail to the TCMIS DBA in the OMP.

Since these products will be reflected in the Monthly Performance Report
and the Semiannual Report to the Congress, they will be assigned product
numbers. The numbering scheme will parallel the current report and
testimony numbering scheme, with the exception being that the fifth and
sixth digits will be used to distinguish the product as a Congressional
response. The identifying code will be "0R" (i.e., 200x-0R-xxx).

-   ***Congressional Briefings*** (200xN11.CBxx) -- This code should be
    used to account for the resources expended in providing
    Congressional briefings. For purposes of capturing the time expended
    to prepare and discuss relevant audit issues, Congressional
    briefings are defined as either a telephone conference or an
    in-person meeting.

> The audit numbering scheme will be the first four digits reflecting
> the fiscal year, the next three digits signifying this task as
> Congressional activity, CB identifying the activity as an OA briefing
> to the Congress, and the final two digits reflecting the sequential
> numbering of each fiscal year's Congressional briefing. To receive a
> number, the following information must be provided:

-   Date of the Briefing.

-   Subject Matter.

-   Appropriate Congressional Contacts (Committee or Individual).

-   Briefing Attendees.

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-   ***Special Projects*** (200xN10) -- This code should be used to
    capture\
    non-audit related time such as responding to data calls, preparing
    the TCMIS Annual Audit Plan, analyzing/approving monthly TCMIS input
    data, or any other projects assigned by the AIGAs.

-   ***Training Classes*** (200xS01) -- These are courses sponsored by
    the Treasury Inspector General for Tax Administration (TIGTA), the
    Department of the Treasury, or the Internal Revenue Service (IRS)
    and are commonly referred to as in-house courses. This category
    should also be used for training from outside vendors (i.e., MIS
    Training Institute, ESI International, AGA, USDA Grad School, IGATI,
    Treasury, AICPA, IIA, etc.).

-   ***On-the-Job (OJT) Training*** (200xS02) -- This code can be used
    by both the trainee and the coach. Generally, the trainee will
    charge all of his or her time to this category during the first 3
    months or completion of the OJT package, whichever comes first. The
    coach can charge up to one-half of his or her time during the
    comparable period to OJT. All CPE hours for the USDA correspondence
    course should be reported under 200xS03 when the new employee
    completes the course.

-   ***Self-Study/Professional Certification*** (200xS03) *--*
    Self-study courses and courses taken in preparation for achieving a
    professional certification. *CPE hours for the USDA correspondence
    course for new employees should also be charged to this code.*

-   ***Business Unit CPEs*** (200xS04) -- This refers to staff
    development time spent attending Business Unit CPEs.

-   ***Course Development/Instructing*** (200xS05) -- This refers to
    time spent developing a course specifically for OA and time spent
    presenting the class. The *GAO's Guidance on GAGAS Requirements for
    Continuing Professional Education* (GAO-05-568G, dated April 2005)
    contains specific information regarding how to calculate the amount
    of CPE hours earned for course development and instruction. See
    [**Section (300)-140**](../../300-140/chapter300-140.doc#courseinst)
    for more information.

-   ***Equal Employment Opportunity (EEO) Training*** (200xS06) -- This
    code is used to record EEO training. Time spent on classes related
    to EEO, diversity, preventing sexual harassment, and emphasis area
    programs, such as Association for the Improvement of Minorities
    (AIM), Federally Employed Women (FEW), Women in Federal Law
    Enforcement (WIFLE), etc., should be charged to this code.

-   ***Security Training*** (200xS07) -- This code is used to record
    training related to security of the workplace, security of computer
    equipment, security of data, etc. This codes also includes the
    annual UNAX refresher and annual security awareness refresher
    training. GAO guidelines prohibit CPE credit for refresher courses.

-   ***Leadership Development Program** (LDP*) (200xS08) -- Used to
    record duties associated with the LDP.

-   ***General Short-Term Research*** (200x0900) -- This direct time
    code is used for short-term research conducted for planning audit
    assignments.

-   ***Late Management Responses*** (200x0901.xxx) -- This direct time
    code is used to capture time expended to process responses to final
    reports issued in a prior fiscal year. There is one numbering scheme
    for the entire OA. Each AIGA's secretary, or other designee, will
    assign the numbers. A three-digit dot extension will be used to keep
    the respective audit time separate for each audit. The general
    research project title will include the words "Late Management
    Response" and the original TCMIS audit number.

-   ***Strategic/Annual Audit Planning*** (200x0890) -- This direct time
    code is used for strategic and annual audit planning and the
    development of risk assessments. The extension for this number will
    be used based on the business unit involved: .10 for Management
    Services and Exempt Organizations, 20 for Security and Information
    Technology Services, 30 for Compliance and Enforcement Operations,
    and 40 for Returns Processing and Account Services\...

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-   ***Cross-Cutting Strategies*** (200x0510) -- This direct time codes
    is used for developing cross-cutting strategies. The extension
    number will be based on the business unit involved: 10 for
    Management Services and Exempt Organizations, 20 for Security and
    Information Technology Services, 30 for Compliance and Enforcement
    Operations, and 40 for Returns Processing and Account Services.

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-   ***Investigation Collaterals*** (200x0910) -- This direct time code
    is used for assisting the Office of Investigations.

-   ***TeamMate Version Testing*** (200x0610) -- This time code is used
    for testing versions of TeamMate.

-   ***Investigative Imprest Funds*** (200xN12.xxx) -- This indirect
    time code is used for audits of the Office of Investigations'
    Investigative Imprest Funds. The extension for this number will
    include the city where the fund is located, e.g., 200xN12.CHI will
    be used for the Chicago Imprest Fund. Imprest Fund reviews will be
    shown on the TIGTA Performance Report, but the reports for these
    reviews will not be counted toward the business unit's report goal.

-   ***A123 (Intra-Governmental Payment and Collection -- IPAC)***
    (200xN13.Qxx) -- This indirect time code is used for
    Intra-Governmental Payment and Collection (IPAC) reviews that will
    be performed on a quarterly basis. The extension will include the
    quarter for each review, e.g., IPAC-First Quarter Review will be
    200xN13.Q01. IPAC reviews will be shown on the TIGTA Performance
    Report.

Where appropriate, dot extensions should be used to further define
specific tasks or assignments related to a general category. These
extensions should be two or three alpha or numeric characters, e.g.,
200xN02.JAC is assigned for the Journey-Level Advisory Council,
200xN02.TM for TeamMate, etc. Please consult your TCMIS coordinator or
DBA for the proper use of dot extensions.

120.4.2 [Presidential Management Agenda Initiatives (PMAI)
Codes]{.underline}. The PMAI codes are tracked in TCMIS to report OA's
coverage to members of the Congress and outside organizations. There are
five Government-wide initiatives and one additional category to track
audit coverage of Homeland Security issues. Audits should be categorized
in TCMIS using the following codes for PMAI initiatives established in
FY 2003:

  --------- -------------------------------------------------------------
  Code      Initiative

  HC        Strategic Management of Human Capital

  CS        Competitive Sourcing

  IM        Improved Financial Management

  EG        Expanded Electronic Government

  BP        Budget and Performance Integration

  HS        Homeland Security

  NE        None
  --------- -------------------------------------------------------------

See [**Exhibit (300)-120.3**](#ExhibitPMAI), Presidential Management
Agenda Initiatives Report Excerpts, which should be used to aid in
categorizing audits by PMAI code.

120.4.3 [Major Management Challenges Codes]{.underline}. These codes are
used to identify audits by the Major Management Challenges identified
each fiscal year. This information is used when preparing reports and
the Semiannual Report for Congress. [**Exhibit
(300)-120.4**](../chapter300-120.doc#ExhibitMMCodes) contains the list
of these codes. The first two digits of the code represent the fiscal
year.

120.4.4 [Origin of Audit Codes]{.underline}. These codes are used to
identify the origin of the idea for the audit. If an audit idea was
developed by the TIGTA or one of the OA's business units, the code will
be designated as Inspector General (IG), Management Services and Exempt
Organizations (MSE), Security and Information Technology Services (SIT),
Compliance and Enforcement Operations (CEO), or Returns Processing and
Account Services (RPA). If the audit idea was a suggestion from IRS
executives, the appropriate code can be found in the table in [**Exhibit
(300)-120.5**](../chapter300-120.doc#ExhibitAuditOrigin). The origin of
audit codes for those ideas originating from the IRS will be further
categorized as either a suggestion or a request. The definitions are as
follows:

-   Those audit ideas that are obtained from an IRS Executive and are
    included as part of our risk assessment process would be coded as a
    SUGGESTION.

-   Those audit ideas that emerge as a result of IRS requesting that we
    look into a specific emerging issue, thus not going through the risk
    assessment process would be coded as a REQUEST.

    120.5 [TCMIS Reports]{.underline}.

Project profiles and exception data will be updated (sent) on a
bi-weekly basis. Updates will be monitored systemically and reports
distributed.

After receipt of data from the TCMIS Coordinators, the DBA verifies
information and prepares a variety of monthly and quarterly reports.
These reports include:

-   Schedule of Drafts Outstanding Over 60 Days (monthly).

-   OA TIGTA Performance Report (monthly).

The Drafts Outstanding Over 60 Days is distributed internally to OA
management to aid in the management and oversight of the audit program.
The Director, OMP, forwards the OA TIGTA Performance Report to the
Office of Mission Support staff, where it is combined with the remaining
offices in the TIGTA to create the TIGTA Performance Report.

120.6 [Audit Time Report]{.underline}.

OA employee time is controlled on the TCMIS. Project time and expense
will be input by audit staff into the global TCMIS via the new web-based
application, Time and Expense Capture. All OA employees should use this
TEC to provide a daily record of their time expended on audit
activities, training, and leave. Employees complete and submit their
form electronically at the end of the month to their appropriate manager
for review and approval. Timely submission is essential because this
information is used by TCMIS Coordinators in the preparation of monthly
activity reports.

Travel and administrative time, such as preparing travel vouchers, time
reports, and employee evaluations, should be charged to related audit
projects.

Employees must also prepare the electronic Travel Expense section when
travel expenditures are claimed. This information aids in tracking
project costs. The travel section is included with the electronic TEC
file for the time report. Managers should approve the travel section
before forwarding the electronic file to the TCMIS Coordinator for the
appropriate business unit.

**[Exhibit (300)-120.1]{.underline}**

[Pre-Defined TCMIS Numbers]{.underline}

**[INDIRECT TIME CATEGORIES]{.underline}**

(No extensions are allowed unless issued from the Administrator.)

(The "x" represents the current fiscal year (FY), e.g., 200xN02 would be
2009N02 for FY 2009).

Staff Support

  ------------ ---------------------- -------------- -----------------------
  200xN02      Inspector General      200xN09        Other
               Studies or Task Forces                

  200xN03      Managers' Meetings     200xN09.RFD    Refund File Database
                                                     Development

  200xN04      Office                 200xN10        Special Projects
               Moves/Renovations                     

  200xN05      Internal Peer Reviews  200xN11.CBxx   Congressional Briefings

  200xN05.EX   External Peer Reviews  200xN11.CRxx   Congressional Responses

  200xN06      Staff Meetings         200xN11.Txx    Congressional Testimony

  200xN07      EEO Time               200xN12.xxx    Imprest Fund --
                                                     (location)

  200xN08      Recruiting             200xN13.Qxx    Intra-Governmental and
                                                     Payment Collection
  ------------ ---------------------- -------------- -----------------------

***Technique: NO RAS Code: NO Functional Area: SU***

**[Computer Support]{.underline}**

200xC01 Information Technology Support 200xC02 Master File Extracts

200xC03 Other

***Technique: CS RAS Code: CS Functional Area: CS***

**[IG Management (Audit Managers)]{.underline}**

  --------- -------------------------- ----------- -----------------------
  200xM01   Administrative Duties      200xM02     Staff Development

  --------- -------------------------- ----------- -----------------------

***Technique: IGM RAS Code: GA Functional Area: GA***

**[Executive Supervision (Directors)]{.underline}**

  --------- -------------------------- ----------- -----------------------
  200xE01   Executive Supervision                  

  --------- -------------------------- ----------- -----------------------

***Technique: ES RAS Code: ES Functional Area: ES***

**[Staff Development]{.underline}**

  --------- -------------------------- ----------- --------------------------
  200xS01   Training Classes           200xS05     Course
                                                   Development/Instructing.

  200xS02   On-the-Job Training        200xS06     EEO Training

  200xS03   Self-Study/Professional    200xS07     Security Training
            Certification                          

  200xS04   Business Unit CPEs         200xS08     Leadership Development
                                                   Program
  --------- -------------------------- ----------- --------------------------

***Technique: DE RAS Code: DE Functional Area: DE***

Exhibit (300)-120.2

MIS Project Profile and Data Elements

  ------------- --------------------- ----------------------------- --------------- ------- ----------------
                **[ ]{.underline}**   **Profile Field**             **Tab**                 **Source
                                                                                            Application**

  **TMC Adm /   **1**                 Project Code                  **General**             TeamSchedule
  MIS Coor.**                                                                               

                **2**                 Project Group                 **General**             TeamSchedule

                **3**                 Project Title                 **General**             TeamSchedule

                **4**                 Disclosure Type               **General**             TeamSchedule

                **5**                 Business Unit                 **General**             TeamSchedule

                **6**                 Project Plan Type             **General**             TeamSchedule

                **7**                 ***Origin (FY \_ Code)***     **General**             TeamSchedule

                **8**                 PMAI Code                     **Risk**                TeamSchedule

  **MIS         **9**                 FY Major Challenge Area       Custom                  TC MIS Milestone
  Coordinator                                                                               
  (Ctrl                                                                                     
  Table)**                                                                                  

                **10**                Staff Days - **(Contract)**   **Custom**      ** **   TC MIS Milestone

                **11**                Calendar Days - Estimated     **Custom**      ** **   TC MIS Milestone
                                      **(Contract)**                                        

                **12**                Draft Report Date             **Custom**      ** **   TC MIS Milestone
                                      **(Contract)**                                        

                **13**                Planning Start - Actual       Schedule                TC MIS Milestone

                **14**                PE / FW Start Date - Actual   Schedule        ** **   TC MIS Milestone

                **15**                FW End / Rpt Start Date -     Schedule        ** **   TC MIS Milestone
                                      Actual                                                

                **16**                Draft Report Date - Actual    Tracking        ** **   TC MIS Milestone

                **17**                Mgt Resp Date - Actual        Tracking        ** **   TC MIS Milestone

                **18**                Final Report Date - Actual    Tracking        ** **   TC MIS Milestone

                **19**                Report Number                 **Custom**      ** **   TC MIS Milestone

                **20**                Report Title                  **Custom**      ** **   TC MIS Milestone

  **Audit Mgr / **21**                Director Name                 **General**             **TeamMate**
  Lead Input**                                                                              

                **22**                Manager Name                  **Team**                **TeamMate**

                **23**                Lead Name                     **Team**                **TeamMate**

                **24**                Overall Objective             **Objective**           **TeamMate**

                **25**                Background                    Background              **TeamMate**

                **26**                Current Status (Narrative     **Summary**             **TeamMate**
                                      Summary)                                              

                **27**                Draft Report Date - Estimated Tracking                **TeamMate**

                **28**                Final Report Date - Estimated Tracking                **TeamMate**

                **29**                Final Outcome Measure         Summary                 **TeamMate**

  **SQL**       **30**                Staff Days - Actual           **Virtual**             TeamCentral
                                                                                            (SQL)

                **31**                Virtual: Calendar Days -      **Virtual**             TeamCentral
                                      Actual                                                (Sys.)

                **32**                MIS Status Code \*            **Custom**              TeamCentral
                                                                                            (SQL)
  ------------- --------------------- ----------------------------- --------------- ------- ----------------

[]{#ExhibitPMAI .anchor}**[Exhibit (300)-120.3]{.underline}**

[Presidential Management Agenda Initiatives Report Excerpts]{.underline}

**[Strategic Management of Human Capital (HC)]{.underline}**

The first priority of the President's management reform initiative is to
make the Federal Government citizen-centered. The number of layers in
the Government must be compressed to reduce the distance between
citizens and decision-makers, and agencies should redistribute their
allotted staff from higher-level positions to front-line
service-delivery. Each agency has been asked to prepare a 5-year
restructuring plan as part of its 2003 budget request, based upon a
workforce analysis, to accomplish this important goal.

Agencies will reshape their organizations to meet a standard of
excellence in attaining the outcomes important to the nation. Each
agency will identify how it will reduce the number of managers, reduce
the number of organizational layers, reduce the time it takes to make
decisions, change the span of control, and increase the number of
employees who provide services to citizens.

The Administration will adopt information technology (IT) systems to
capture some of the knowledge and skills of retiring employees.
Knowledge management systems are just one part of an effective strategy
that will help generate, capture, and disseminate knowledge and
information that is relevant to the organization's mission.

While the Administration will be seeking some targeted civil service
reforms, agencies must make better use of the flexibilities currently in
place to acquire and develop talent and leadership. Such authorities are
largely underutilized across the Federal sector because many agencies
are unaware of the existence of such flexibilities. The Administration
will assess agencies' use of existing authorities as well as the
outcomes achieved under demonstration projects. This assessment will
help us determine what statutory changes are needed to enhance
management flexibility, permit more performance-oriented compensation,
correct skills imbalances, and provide other tools to recruit, retain,
and reward a high-quality workforce.

**[Competitive Sourcing (CS)]{.underline}**

To achieve efficient and effective competition between public and
private sources, the Administration has committed itself to simplifying
and improving the procedures for evaluating public and private sources,
to better publicizing the activities subject to competition, and to
ensuring senior-level agency attention to the promotion of competition.

In accordance with the Federal Activities Inventory Reform (FAIR) Act,
agencies are assessing the susceptibility to competition of the
activities their workforces are performing. After review by the Office
of Management and Budget (OMB), the agencies will provide their
inventories to the Congress and make them available to the public.
Interested parties may challenge the omission or inclusion of any
particular activity.

Agencies developed specific performance plans to meet the 2002 goal of
completing public-private or direct conversion competition on not less
than 5 percent of the full-time equivalent employees listed on the FAIR
Act inventories. The performance target will increase by 10 percent in
2003.

The Administration will adopt procedures to improve and expand
competition. As a first step, the OMB has proposed that reimbursable
(fee-for-service) work involving performance by a Federal agency be
recompeted every 3 to 5 years, similar to standard contract review,
renewal, or solicitation procedures.

The Administration will seek to implement findings of the Commercial
Activities Panel, a commission created by the Congress to examine the
policies and procedures governing public-private competition.

Finally, the Administration is pursuing administrative and legislative
actions to incorporate the full costs of agency work into the daily
budget and acquisition process. This will eliminate the complex,
after-the-fact calculation of public-sector costs.

**[Improved Financial Performance (IM)]{.underline}**

The Administration will first establish a baseline of the extent of
erroneous payments. Agencies will include in 2003 budget submissions
information on erroneous payment rates, including actual and target
rates, where available, for benefit and assistance programs over \$2
billion. Using this information, the OMB will work with agencies to
establish goals to reduce erroneous payments for each program.

> To ensure that Federal financial systems produce accurate and timely
> information to support operating, budget, and policy decisions, the
> OMB will work with agencies to:

-   Improve timeliness by:

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-   Re-engineering reporting processes and expanding use of web-based
    technologies.

-   Instituting quarterly financial statements.

-   Accelerating end-of-year reporting.

-   Measuring systems compliance with agencies' ability to meet OMB and
    Department of the Treasury requirements accurately and timely.

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-   Enhance usefulness by:

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```
-   Requiring comparative financial reporting.

-   Reporting specific financial performance measurements.

-   Integrating financial and performance information.

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```
-   Ensure reliability by obtaining and sustaining clean audit opinions
    for:

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-   Components of agencies.

-   Agencies.

-   The Government as a whole.

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```
-   Changes to the budget process will allow us to better measure the
    real cost and performance of programs.

**[Expanded Electronic Government (EG)]{.underline}**

The Administration will advance E-government strategy by supporting
projects that offer performance gains across agency boundaries, such as
e-procurement, e-grants, e-regulation, and e-signatures. It will manage
E-government projects more effectively by using the budget process to
insist on more effective planning of IT investments by Government
agencies. A task force of agency personnel in coordination with the OMB
and the President's Management Council will identify E-government
projects that can deliver significant productivity and performance gains
across the Government. The task force will also identify the systematic
barriers that have blocked the deployment of E-government advances. The
task force will work to:

-   Create easy-to-find single points of access to Government services
    for individuals.

-   Reduce the reporting burden on businesses---businesses should not
    have to file the same information over and over because the
    Government fails to reuse the data appropriately or fails to take
    advantage of commercial electronic transaction protocols.

-   Share information more quickly and conveniently between the Federal
    and state, local, and tribal governments. We must also do a better
    job of collaborating with foreign governments and institutions.

-   Automate internal processes to reduce costs internally, within the
    Federal Government, by disseminating best practices across agencies.

To support the task force's work, the OMB will scrutinize Federal IT
investments to ensure that they maximize interoperability and minimize
redundancy. The Administration will also improve the Federal
Government's use of the Web.

It will expand and improve the USA.gov (http://www.USA.gov) web site to
offer citizens a convenient entry to Government services. The OMB will
engage the agencies and state and local governments in this venture, to
help citizens find information and obtain services organized according
to their needs and not according to the divisions created by the
Government's organizational chart.

Agencies will undertake a Federal Public Key Infrastructure to promote
digital signatures for transactions within the Federal Government,
between the Government and businesses and between the Government and
citizens. The digital signature initiative should be coordinated with
state and local governments as well as the private sector.

All agencies will use a single e-procurement portal, www.FedBizOpps.gov,
to provide access to notices of solicitations over \$25,000. A fully
operational Government-wide entry point on the Internet represents a
first step in capitalizing on electronic business processes and making
e-procurement the Government-wide standard. The next step: agencies will
make use of the single portal to consolidate procurement on the way to
the broader E-government goal of supply chain management.

Major regulatory agencies will use the Web to inform citizens of the
cases before them, allow access to the development of rules, and make
more transparent the decisions they make.

**[Budget and Performance Integration (BP)]{.underline}**

To provide a greater focus on performance, the Administration plans to
formally integrate performance review with budget decisions. This
integration is designed to begin to produce performance-based budgets
starting with the 2003 budget submission.

Initially, the OMB will work with agencies to select objectives for a
few important programs, assess what programs do to achieve these
objectives, how much that costs, and how effectiveness could be
improved.

Over time, agencies will be expected to identify high-quality outcome
measures, accurately monitor the performance of programs, and begin
integrating this presentation with associated cost. Through the use of
this information, high-performing programs will be reinforced and
nonperforming activities will be reformed or terminated.

The Administration is also transmitting legislative changes that will
make budgeting and management in the Executive Branch more
performance-oriented and improve accountability. The Administration will
propose a bill to fully fund employee retirement benefits, taking a step
toward simplifying the rules for opening Government support services to
more competition by substituting a budgetary cost measure for the
current complex cost comparison. A second bill will align other costs
with results and provide a framework for a more transparent budget
presentation.

Ultimately, the Administration will attempt to more completely integrate
information about costs and program performance in a single oversight
process. This would include budgeting for the full cost of resources
where they are used, making budget program and activity lines more
parallel with outputs, and, where useful, improving alignment of budget
accounts.

**[Homeland Security (HS)]{.underline}**

The President created a new Department of Homeland Security, the most
significant transformation of the U.S. Government in over a
half-century, by largely transforming and realigning the current
confusing patchwork of Government activities into a single department
whose primary mission is to protect our homeland. The creation of a
Department of Homeland Security is one more key step in the President\'s
national strategy for homeland security.

**The Department of Homeland Security would make Americans safer because
our nation would have:**

-   One department whose primary mission is to protect the American
    homeland.

-   One department to secure our borders, transportation sector, ports,
    and critical infrastructure.

-   One department to synthesize and analyze homeland security
    intelligence from multiple sources.

-   One department to coordinate communications with state and local
    governments, private industry, and the American people about threats
    and preparedness.

-   One department to coordinate our efforts to protect the American
    people against bioterrorism and other weapons of mass destruction.

-   One department to help train and equip for first responders.

-   One department to manage Federal emergency response activities.

-   More security officers in the field working to stop terrorists and
    fewer resources in Washington managing duplicative and redundant
    activities that drain critical homeland security resources.

[Exhibit (300)-120.4]{.underline}

Major Management Challenges Codes

+-----------------+-----------------------------------+----------------+
| **FY 2009       | **Major Management Challenge      | **Prior Year   |
| Code**          | Area**                            | Codes**        |
+-----------------+-----------------------------------+----------------+
| 09-01           | Modernization of the IRS          | 08-01          |
|                 |                                   |                |
|                 |                                   | 07-01          |
|                 |                                   |                |
|                 |                                   | 06-01          |
|                 |                                   |                |
|                 |                                   | 05-02          |
|                 |                                   |                |
|                 |                                   | 04-02          |
+-----------------+-----------------------------------+----------------+
| 09-02           | Security of the IRS               | 08-03          |
|                 |                                   |                |
|                 |                                   | 07-03          |
|                 |                                   |                |
|                 |                                   | 06-03          |
|                 |                                   |                |
|                 |                                   | 05-01          |
|                 |                                   |                |
|                 |                                   | 04-01          |
+-----------------+-----------------------------------+----------------+
| 09-03           | Tax Compliance Initiatives        | 08-02          |
|                 |                                   |                |
|                 | -   Business & Individual         | 07-02          |
|                 |     Compliance Initiatives        |                |
|                 |                                   | 06-02          |
|                 | -   Tax-Exempt Entities           |                |
|                 |     Compliance Initiatives        | 05-06          |
|                 |                                   |                |
|                 |                                   | 04-06          |
+-----------------+-----------------------------------+----------------+
| 09-04           | Providing Quality Taxpayer        | 08-04          |
|                 | Service Operations                |                |
|                 |                                   | 07-04          |
|                 |                                   |                |
|                 |                                   | 06-06          |
|                 |                                   |                |
|                 |                                   | 05-07          |
|                 |                                   |                |
|                 |                                   | 04-07          |
+-----------------+-----------------------------------+----------------+
| 09-05           | Human Capital                     | 08-06          |
|                 |                                   |                |
|                 |                                   | 07-10          |
|                 |                                   |                |
|                 |                                   | 06-10          |
|                 |                                   |                |
|                 |                                   | 05-10          |
|                 |                                   |                |
|                 |                                   | 04-10          |
+-----------------+-----------------------------------+----------------+
| 09-06           | Erroneous and Improper Payments   | 08-07          |
|                 |                                   |                |
|                 |                                   | 07-07          |
|                 |                                   |                |
|                 |                                   | 06-07          |
|                 |                                   |                |
|                 |                                   | 05-08          |
|                 |                                   |                |
|                 |                                   | 04-08          |
+-----------------+-----------------------------------+----------------+
| 09-07           | Complexity of the Tax Law         | 08-05          |
|                 |                                   |                |
|                 |                                   | 07-05          |
|                 |                                   |                |
|                 |                                   | 06-04          |
|                 |                                   |                |
|                 |                                   | 05-05          |
|                 |                                   |                |
|                 |                                   | 04-05          |
+-----------------+-----------------------------------+----------------+
| 09-08           | Taxpayer Protection and Rights    | 08-08          |
|                 |                                   |                |
|                 |                                   | 07-08          |
|                 |                                   |                |
|                 |                                   | 06-08          |
|                 |                                   |                |
|                 |                                   | 05-09          |
|                 |                                   |                |
|                 |                                   | 04-09          |
+-----------------+-----------------------------------+----------------+
| 09-09           | Processing Returns and            | 08-09          |
|                 | Implementing Tax Law Changes      |                |
|                 | During the Tax Filing Season      | 07-09          |
|                 |                                   |                |
|                 |                                   | 06-09          |
|                 |                                   |                |
|                 |                                   | 05-04          |
|                 |                                   |                |
|                 |                                   | 04-04          |
+-----------------+-----------------------------------+----------------+

+-----------------+-----------------------------------+----------------+
| **FY 2009       | **Major Management Challenge      | **Prior Year   |
| Code**          | Area**                            | Codes**        |
+-----------------+-----------------------------------+----------------+
| 09-10           | Improving Performance and         | 08-10          |
|                 | Financial Data for Program and    |                |
|                 | Budget Decisions                  | 07-06          |
|                 |                                   |                |
|                 |                                   | 06-05          |
|                 |                                   |                |
|                 |                                   | 05-03          |
|                 |                                   |                |
|                 |                                   | 04-03          |
+-----------------+-----------------------------------+----------------+
| 09-00           | Not identified or not meeting any | 08-00          |
|                 | of the above                      |                |
|                 |                                   | 07-00          |
|                 |                                   |                |
|                 |                                   | 06-00          |
|                 |                                   |                |
|                 |                                   | 05-00          |
|                 |                                   |                |
|                 |                                   | 04-00          |
+-----------------+-----------------------------------+----------------+

[Exhibit (300)-120.5]{.underline}

Origin of Audit Codes

(For example, if the idea for the audit was from Returns Processing and
Accounts Services Annual Planning efforts, use TIGTA code. If the audit
idea was obtained from an IRS executive within the W&I Business
Operating Division, use IRS code WID.)

  --------------- -------------------------------------------------------
  **Code**        **Title**

  IG              TIGTA Office of the Inspector General

  MSE             TIGTA Management Services and Exempt Organizations

  SIT             TIGTA Security and Information Technology Services

  CEO             TIGTA Compliance and Enforcement Operations

  RPA             TIGTA Returns Processing and Account Services

  OI              TIGTA Office of Investigations

                  

  TAS             IRS Taxpayer Advocate Service Suggestion

  TAR             IRS Taxpayer Advocate Service Request

  CID             IRS Criminal Investigation Suggestion

  CIR             IRS Criminal Investigation Request

  LMS             IRS Large & Mid-Size Business Division Suggestion

  LMR             IRS Large & Mid-Size Business Division Request

  SBS             IRS Small Business/Self-Employed Division Suggestion

  SBR             IRS Small Business/Self-Employed Division Request

  TEG             IRS Tax Exempt & Government Entities Division
                  Suggestion

  TER             IRS Tax Exempt & Government Entities Division Request

  WID             IRS Wage & Investment Division Suggestion

  WIR             IRS Wage & Investment Division Request

  CIO             IRS Chief Information Officer Suggestion

  CIR             IRS Chief Information Officer Request

  IOB             IRS Oversight Board Suggestion

  IOR             IRS Oversight Board Request

  AWSS            IRS AWSS Chief Suggestion

  AWSR            IRS AWSS Chief Request

  CFO             Chief Financial Officer Suggestion

  CFR             Chief Financial Officer Request

  HCS             IRS Human Capital Officer Suggestion

  HCR             IRS Human Capital Officer Request

  PIS             Chief, Privacy, Information Protection & Data Security
                  Suggestion

  PIR             Chief, Privacy, Information Protection & Data Security
                  Request

  OPS             Director, Office of Professional Responsibility
                  Suggestion

  OPR             Director, Office of Professional Responsibility Request
  --------------- -------------------------------------------------------

  --------------- -------------------------------------------------------
  **Code**        **Title**

  HWM             House Ways & Means Committee

  SFC             Senate Finance Committee

  SAC             Senate Appropriations Committee

  STA             Statutory

  OTH             Other
  --------------- -------------------------------------------------------