**(600)-60** **[STRATEGIC MANAGEMENT PROCESS]{.underline}**

[The Government Performance and Results Act of
1993](../../../chapter200-general/200-10/chapter200-10.doc) (GPRA)
requires government agencies to submit a strategic plan for program
activities to the Office of Management and Budget (OMB) and Congress.
[OMB Circular
A-11](../../../chapter200-general/200-10/chapter200-10.doc) provides
guidance on the preparation and submission of strategic plans, and
annual performance plans and reports.

1.  [Strategic Plan.]{.underline}

The strategic plan defines an agency's long-term goals, objectives, and
strategies for achieving its mission.

60.1.1 The strategic plan must cover a minimum of five years from the
Fiscal Year (FY) in which it is submitted. The plan must be updated at
least every three years. TIGTA's current strategic plan
(<http://www.treas.gov/tigta/about_strategic.shtml>) is for the period,
FY 2000 -- FY 2005.

60.1.2 The overall structure, format, and timeline for the strategic
plan are generally dictated by the Departmental Office. TIGTA's
strategic goals, objectives and strategies must be aligned with
Treasury's strategic goals and objectives, and should also relate to
IRS' strategic goals and objectives. The Office of Performance and
Investment (OPI) is responsible for coordinating with Treasury's Office
of Strategic Planning and Evaluation in developing and issuing TIGTA's
strategic plan.

60.1.3 OPI develops the strategic plan with input from all of TIGTA's
executives. The process of defining the long-term goals and objectives
begins with the Inspector General's vision for the organization. The
TIGTA executives define the functional strategies and programs to
achieve the vision.

60.1.4 OPI consults with Treasury's Office of Strategic Planning and
Evaluation on the format, content, and time frames for the issuance of
the strategic plan.

60.1.5 OPI develops an initial draft strategic plan and submits it to
the TIGTA executives for review and comment. OPI revises the strategic
plan based on the feedback received from the executives.

6.  Once the draft plan is approved internally, OPI issues the draft
    strategic plan to Treasury's Office of Strategic Planning and
    Evaluation, which in turn submits the plan to OMB. Treasury's Office
    of Strategic Planning and Evaluation provides TIGTA with a due date
    or time frame for this submission.

60.1.7 OPI revises the draft plan based on the Treasury and OMB feedback
and resubmits the plan to Treasury. Once approval is received from
Treasury and OMB, TIGTA may begin the Congressional consultation
process. This will generally occur after Treasury has begun its
Congressional consultations on the Departmental plan.

60.1.8 OPI, in coordination with TIGTA's Congressional Liaison, will
consult with key Congressional committees before finalizing the
strategic plan. The key Congressional committees (Chairman and Ranking
Member) to be consulted include the following:

-   House Committee on Appropriations

-   House Committee on Government Reform

-   House Committee on Ways and Means

-   Senate Committee on Appropriations

-   Senate Committee on Finance

-   Senate Committee on Governmental Affairs

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-   Subcommittee on Treasury and General Government, Senate Committee on
    Appropriations

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-   Subcommittee on Treasury, Postal Service, and General Government,
    House Committee on Appropriations

60.1.9 Once the consultation process is completed, OPI finalizes the
strategic plan based on the feedback received.

60.1.10 OPI coordinates the publishing and distribution of the final
strategic plan. This includes making the plan accessible from both the
homepage on the Intranet and TIGTA's web site on the Internet.

60.1.11 In conjunction with the TIGTA executives, OPI will review the
strategic plan at least annually, and revise the strategic plan as
needed.

2.  [Annual Performance Plans and Reports.]{.underline}

GPRA also requires agencies to submit Annual Performance Plans and
Reports to OMB and Congress. The Annual Performance Plan provides the
direct link between the long-term strategic goals outlined in TIGTA's
strategic plan to the specific measurable goals to be accomplished
during a single fiscal year. The Annual Performance Report provides a
comparison of actual performance to the performance goals set out in the
Annual Performance Plan. Both the Annual Performance Plan and
Performance Report are incorporated in TIGTA's budget submissions.

60.2.1 As defined by GPRA, an Annual Performance Plan features three
elements:

-   The performance goals and indicators for the fiscal year;

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-   A description of the operational processes, skills, technology and
    resources required to meet the performance goals; and,

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-   A description of the means that will be used to verify and validate
    measured values.

    2.  OPI develops the Annual Performance Plan with input from TIGTA's
        executives. The Inspector General, in conjunction with TIGTA's
        executives, defines the overall goals and measures that will be
        used to evaluate TIGTA's performance. The measures are limited
        to those that focus on key attributes and characteristics of
        TIGTA's core mission. The measures show, in a substantive way,
        how well TIGTA is carrying out its program responsibilities. The
        plan also defines each measure and provides a statement on the
        verification and reliability of the performance data.

    3.  Since the Annual Performance Plan is part of the budgetary
        process, data for four fiscal years is reflected in each budget
        submission. Depending on which budget submission (Departmental,
        OMB or Congressional) is involved, the performance data includes
        a combination of actual, estimated, final plan and proposed.
        Generally, the Departmental budget submission is in the
        April/May time frame. The OMB submission is in the
        August/September time frame and the Congressional submission is
        in the December/January time frame. The Department issues
        detailed guidance memoranda outlining the preparation
        requirements and required submission dates for the Annual
        Performance Plan and the Annual Performance Report, as
        appropriate.

    4.  An Annual Performance Report is prepared to show program
        performance for the previous fiscal year. This report compares
        TIGTA's performance with the goals established in its Annual
        Performance Plan, and describes the actions needed to address or
        revise any unmet goals. The Annual Performance Report is
        completed as part of the Congressional budget submission.
        Treasury uses the bureaus' Annual Performance Reports to prepare
        a consolidated Program Performance Report which is due to
        Congress by March 31 of each year.

    5.  TIGTA's performance goals and interim and final results are
        entered in the Department's Performance Reporting System (PRS).
        This is a Treasury-wide system that is used by the Department
        and all its bureaus to track the performance measures
        established to comply with GPRA. The system is accessible
        through the internal Treasury-wide web
        ([http://prsprod.cio.treas.gov](http://prsprod.cio.treas.gov/)).
        Upon request by the Department, OPI updates information on
        TIGTA's goals, as well as interim and final performance results,
        into the PRS.

60.3 [TIGTA's Monthly Performance Report]{.underline}.

The monthly performance report includes information on TIGTA's published
GPRA measures (those contained in the Annual Performance Plan), as well
as workload indicators for each function within TIGTA. This report is
used internally to monitor the organization's ongoing progress in
achieving its goals. (.Template-2001 PerfRpt.xls). It also provides the
basis for reporting on TIGTA's annual accomplishments (i.e., Annual
Performance Report).

3.  OPI develops the template for the monthly performance report, in
    conjunction with other TIGTA functions. OPI also develops the
    calendar for the upcoming year outlining the due dates for the
    functions' submissions and the dates OPI will issue the report to
    the TIGTA executives. The report covers the previous month's data
    (e.g., data for the month of October would be reported in
    mid-November).

    1.  Each function prepares its section of the performance report and
        submits the information to OPI. Generally, the functions' input
        is due to OPI by the third Monday of each month. Each function
        is responsible for ensuring the accuracy of the data reported
        and for maintaining appropriate supporting documentation for its
        section of the report.

60.3.3 OPI receives each function's input and is responsible for
combining all components into one consolidated report. OPI forwards the
consolidated report to the TIGTA executives by the Wednesday following
the functions' submission. OPI also prepares highlights of the
performance report showing trends related to both positive areas and
areas of concern. OPI presents the performance report and highlights at
the senior staff meeting.

4.  OPI evaluates the performance measures and workload indicators on a
    regular basis and coordinates with the functions on modifications,
    as needed.

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3.  [Semiannual Reports.]{.underline}

The [Inspector General Act of
1978](../../../chapter200-general/200-10/chapter200-10.doc) requires
each Inspector General to submit a Semiannual Report to the Congress.
This report includes the significant activities of the inspector general
organization for each six-month period ending March 31 and September 30.
The [Internal Revenue Service Restructuring and Reform Act of
1998](../../../chapter200-general/200-10/chapter200-10.doc) (RRA 98)
requires additional reporting requirements for TIGTA. All of the
reporting requirements for TIGTA are shown in [Exhibit
(600)-60.1](../../600-exhibits/exhibit600-60-1.doc), Semiannual Report
Requirements. OPI has overall responsibility for coordinating and
overseeing the development and issuance of TIGTA's Semiannual Report.

60.4.1 The Semiannual Report is due to Treasury no later than April 30
and October 31 of each year. The report is formally transmitted to
Congress by the Secretary of the Treasury within 30 days after receipt
of the report from TIGTA, i.e., May 30 and November 30 each year.

60.4.2 OPI determines the overall format for the Semiannual Report,
which generally includes the following sections:

-   Inspector General's Transmittal to Treasury

-   Office of Treasury Inspector General for Tax Administration

-   Authorities

-   Major Issues Facing the IRS

-   Office of Audit

-   Office Investigations

-   Statistical Reports for the Office of Audit ([Exhibit
    (600)-60.2](../../600-exhibits/exhibit600-60-2.doc))

-   Statistical Reports for the Office of Investigations ([Exhibit
    (600)-60.3](../../600-exhibits/exhibit600-60-3.doc))

-   Statistical Reports -- Other ([Exhibit
    (600)-60.4](../../600-exhibits/exhibit600-60-4.doc))

-   TIGTA Audit Report Listing ([Exhibit
    (600)-60.5](../../600-exhibits/exhibit600-60-5.doc))

-   Section 1203 Standards

-   Statutory TIGTA Reporting Requirements

-   Acronyms

-   Organization Chart

60.4.3 OPI develops the schedule of tasks and milestones for completing
each Semiannual Report.

60.4.4 OPI may convene a kick off meeting for all functional contacts to
discuss the plan and schedule for developing the Semiannual Report. Any
subsequent meetings with the functional contacts will be convened on an
as needed basis to ensure the timely completion of the report.

5.  OPI issues a formal data call to the appropriate internal functions
    (Office of Audit, Office of Investigations and Office of Chief
    Counsel), and to the IRS for information on complaints that they
    receive. There are generally three submissions from the internal
    functions. The first submission includes the general framework for
    Audit and Investigations sections of the report and the synopses of
    significant audits and investigations to be highlighted. The second
    submission is the graphics requiring professional scanning and as
    much statistical data as is available. The final submission includes
    all of the statistical data and the final synopses of audits and
    investigations.

6.  Each function develops its sections of the report following the
    guidelines shown in the Semiannual Report Requirements, [Exhibit
    (600)-60.1](../../600-exhibits/exhibit600-60-1.doc), Semiannual
    Report Requirements. Each function is responsible for retaining the
    supporting documentation for its sections of the report.

60.4.7 OPI receives each function's input and incorporates it into the
Semiannual Report. OPI is responsible for preparing the front sections
of the report and the Inspector General's transmittal to the Treasury
Secretary. OPI is responsible for taking all the components' pieces to
develop one cohesive, consistent report.

60.4.8 All functions should ensure that their respective sections of the
report have been referenced by someone independent of the writing and
information gathering process before the last internal review of the
report.

60.4.9 OPI coordinates the internal and external reviews of the
Semiannual Report with the appropriate officials. Internal reviews
generally include the Inspector General, Chief Counsel and each
function's senior executive and/or their designees. External reviews
generally include IRS and Treasury officials. OPI makes the appropriate
revisions and consults with the functional components where necessary.

60.4.10 OPI is responsible for publishing the Semiannual Report, which
includes the design of the report cover, procurement of publishing
services and the press inspection, if warranted.

60.4.11 OPI transmits the report, under the Inspector General's
signature, to Treasury and distributes copies to TIGTA offices, IRS
officials and other interested organizations, such as President's
Council on Integrity & Efficiency (PCIE) members, press organizations,
etc.

60.4.12 OPI is responsible for ensuring the Semiannual Report is
available on TIGTA's internet web site
(<http://www.treas.gov/tigta/publications_semi.shtml>), on the IRS'
Insider web site, and announcing the availability of the report to TIGTA
employees in the TIGTA News.

60.5 Guidance for Preparing Management Maps

60.5.1 [Introduction.]{.underline} Management Maps are summary documents
for each TIGTA program that:

-   Assess the current state of the program's service or production
    results.

-   Assess the program's capability to provide high quality services or
    products.

-   Address risks that are inhibiting, or could inhibit, the delivery of
    results.

-   Identify opportunities to further enhance service or production.

Management Maps are to be used strategically to pinpoint high-level
strengths and weaknesses, to highlight ways to enhance the strengths and
resolve the weaknesses, and to provoke questions for further analysis.
In addition, the IRB will be able to use the Management Maps in its
decision making processes.

Management Maps are intended to complement, not replace, the TIGTA's
Strategic Plan and existing performance measures. Ideally, the
Management Maps are linked to the Strategic Plan's goals, and use data
from the performance measures in the Service / Production Results area.

Each Assistant Inspector General and the Counsel to the Inspector
General will prepare a Management Map for their program. The Deputy
Inspectors General for Audit and Investigations will also prepare a
summary Management Map of their entire office.

60.5.2 [Instructions for Preparing Management Maps.]{.underline}
Management Maps are to be prepared using the format in [Exhibit
60.6](../../600-exhibits/exhibit600-60-6.doc).

**Background Section**

Briefly describe each of the program's elements / major functions. For
each AIGI, for example, this would entail listing the SACs under their
direction, where the PODs are located, and the focus of their work. Each
AIGA would list their Directors, PODs, and the area(s) of the IRS they
are responsible for auditing.

**Overall Status of Each Major Element / Function Section**

Each executive in charge and their supervisor will assess a variety of
areas for both Service / Production Results and Service / Production
Capability. Each of the elements / major functions listed in the
Background section are to be assessed on a separate page for all the
areas listed in the tables. Executives should give each X a color code
in accordance with the scales following the tables.

The functions may, as appropriate, add to the list of areas shown on the
tables. In addition, the functions will need to define, as appropriate,
what certain terms mean to them, e.g., what does Production Quality mean
to the Office of Audit?

On the Service / Production Capability table:

-   "Business Processes" includes all the function's work and
    administrative processes.

-   "Capacity / Potential for New Work" assesses whether the executives
    believe they can take on a new type / line of work. It does *not*
    mean that the TIGTA has excess capacity. Rather, it is a
    forward-looking assessment of the maturity of the organization in
    its current work and its capability to take on a completely new
    challenge, *resources permitting*.

# Future Strategies Section

Each executive will assess the risks in their operations by completing
the Risks table. Areas receiving, at a minimum, a red or yellow X in the
Service / Production Results and Service / Production Capability tables
should be further discussed in the Risks table. Executives may also
discuss in the Risks table any risks that are associated with items
rated blue or green in the Service / Production Results and Service /
Production Capability tables, or with something not even yet identified
in those tables (e.g., 5 years ago the TIGTA might have listed Human
Capital issues on the Risks table, even if it was not yet on the Service
/ Production Capability table).

-   In the Risk column, executives will name the risk and briefly
    describe it.

-   In the Assessment column, executives will assign the risk a number
    rating from the scale following the table.

-   In the Type column, executives will categorize it as a risk that is
    always present no matter what actions are taken, or as a temporary
    risk that the right actions can make "go away."

-   The Strategy / Actions Planned to address the risk will be shown in
    the row following the description of the risk, to provide enough
    space to fully describe them.

-   The Resources Needed column will contain the dollars, FTEs, etc.,
    needed to implement the strategy / actions planned.

Likewise, each executive will assess the opportunities in their
operations by completing the Opportunities table. Executives will
identify the opportunities that would take specific areas of their
elements / major functions from a blue to a green rating in the Service
/ Production Results and Service / Production Capability tables.

-   In the Opportunity column, executives will name the opportunity and
    briefly describe it.

-   In the Assessment column, executives will assign the opportunity a
    number rating from the scale following the table.

-   The Strategy / Actions Planned to seize the opportunity will be
    shown in the row following the description of the opportunity, to
    provide enough space to fully describe them.

-   The Resources Needed column will contain the dollars, FTEs, etc.,
    needed to implement the strategy / actions planned.

# Timeframe

Management maps for the Offices of Audit, Investigations, Information
Technology, and Management Services, and the Counsel to the Inspector
General, are due annually to the Inspector General on September 1^st^.
Individual, targeted management maps may also be developed ad hoc for
specific issues warranting attention.