a

GAO

United States Government Accountability Office

Report to Congressional Committees

February 2007 BUSINESS SYSTEMS 

MODERNIZATION

Internal Revenue 

Service’s Fiscal Year 

2007 Expenditure Plan

GAO-07-247
What GAO Found

United States Government Accountability Office

Why GAO Did This Study

Highlights

Accountability Integrity Reliability

February 2007

BUSINESS SYSTEMS MODERNIZATION

Internal Revenue Service’s Fiscal Year 

Highlights of GAO-07-247, a report to 2007 Expenditure Plan 

congressional committees 

The Internal Revenue Service’s 

(IRS) Business Systems 

Modernization (BSM) program is a 

multibillion-dollar, high-risk, highly 

complex effort that involves the

development and delivery of a

number of modernized information

systems that are intended to

replace the agency’s aging business 

and tax processing systems. As 

required by law, IRS submitted its 

fiscal year 2007 expenditure plan,

in September 2006, to

congressional appropriations 

committees, requesting $167.3

million from the BSM account. 

GAO’s objectives in reviewing the 

plan were to (1) determine whether 

it satisfied the conditions specified 

in the law, (2) determine IRS’s 

progress in implementing prior 

GAO recommendations, and 

(3) provide any other observations

about the plan and IRS’s BSM 

program. To address these 

objectives, GAO analyzed the plan, 

reviewed related documentation, 

and interviewed IRS officials. 

What GAO Recommends

GAO recommends that the

Commissioner of Internal Revenue 

direct the Chief Information Officer 

to ensure that future expenditure 

plans include a quantitative

measure of progress in meeting 

project scope expectations. In

providing comments on a draft of 

this report, the Commissioner

agreed with the recommendation 

and outlined the actions that IRS is 

planning to take to address it. 

IRS’s fiscal year 2007 expenditure plan satisfies the conditions specified in 

the law. These conditions include meeting the Office of Management and 

Budget’s capital planning and investment control review requirements and 

complying with federal systems acquisition requirements and management 

practices. 

IRS has made significant progress in implementing GAO’s recommendations 

and improving its modernization management controls and capabilities. 

However, controls and capabilities related to requirements development and 

management and post-implementation reviews have not yet been fully 

implemented. In addition, more work remains to be done to fully develop a 

long-term vision and strategy for completing the BSM program. 

GAO has the following four observations on the expenditure plan and the 

BSM program: 

• During 2006, IRS made additional progress in implementing BSM 

projects and in meeting cost and schedule commitments, but two key 

projects experienced significant cost overruns. IRS deployed additional 

releases of the following modernized systems: the Customer Account 

Data Engine (the new taxpayer information database), Modernized 

e-File (a new electronic filing system), and Filing and Payment 

Compliance (a tax collection case analysis support system). While each 

of the five associated project segments delivered during 2006 were 

completed within the targeted 10 percent schedule variance threshold, 

two project segments associated with Modernized e-File and the 

Customer Account Data Engine experienced cost increases of 36 

percent and 15 percent, respectively. 

• IRS could improve its reporting of progress in meeting project scope 

expectations. Although IRS’s expenditure plan provides descriptive 

information on changes in project releases’ scope (i.e., functionality), it 

does not provide a quantitative measure of whether project releases

delivered planned functionality. Such a measure would be helpful in 

providing the Congress with more complete information on IRS’s 

performance in implementing BSM project releases. 

• Future BSM project releases continue to face significant risks and 

issues. The agency, however, recognizes the potential impact of these 

project risks and issues on its ability to deliver planned functionality 

within cost and schedule estimates, and has developed mitigation

strategies to address them. 

• IRS has made further progress in addressing high-priority BSM program 

improvement initiatives. Its high-priority improvement initiatives 

continue to be an effective means of assessing, prioritizing, and 

incrementally addressing BSM issues and challenges. IRS is currently 

focusing on 13 high-priority initiatives, which it plans to complete by the 

end of March 2007. 

www.gao.gov/cgi-bin/getrpt?GAO-07-247.

To view the full product, including the scope 

and methodology, click on the link above. 

For more information, contact David A. 

Powner at (202) 512-9286 or at 

pownerd@gao.gov. 
Page i GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Contents

Letter 1

Recommendation for Executive Action 4

Agency Comments 4

Appendixes

Appendix I: Briefing Slides from the November 14, 2006, Briefing to the 

Senate and House Appropriations Subcommittee Staffs 6

Appendix II: Comments from the Internal Revenue Service 46

Appendix III: GAO Contact and Staff Acknowledgments 49

Abbreviations

AMS Accounts Management Services

BSM Business Systems Modernization

CADE Customer Account Data Engine

IRS Internal Revenue Service

OMB Office of Management and Budget

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Page 1 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

United States Government Accountability Office

Washington, D.C. 20548

A

February 15, 2007 Letr

The Honorable Richard J. Durbin

Chairman

The Honorable Sam Brownback

Ranking Minority Member

Subcommittee on Financial Services and 

 General Government

Committee on Appropriations

United States Senate

The Honorable José E. Serrano

Chairman

The Honorable Ralph Regula

Ranking Minority Member

Subcommittee on Financial Services and

 General Government

Committee on Appropriations

House of Representatives

As required by law, the Internal Revenue Service (IRS) submitted its fiscal 

year 2007 expenditure plan in September 2006 to the congressional 

appropriations committees, requesting $167.3 million from the Business 

Systems Modernization (BSM) account. Our objectives in reviewing the 

plan were to (1) determine whether the plan satisfied the conditions 

specified in the law,1

 (2) determine IRS’s progress in implementing our 

prior recommendations, and (3) provide any other observations about the 

plan and IRS’s BSM program. 

On November 14, 2006, we briefed the cognizant congressional 

appropriations subcommittee staffs on the results of our review. This 

1

BSM funds are unavailable until IRS submits to congressional appropriations committees 

for approval a modernization expenditure plan that (1) meets the Office of Management and 

Budget’s (OMB) capital planning and investment control review requirements; (2) complies 

with IRS’s enterprise architecture; (3) conforms with IRS’s enterprise life cycle 

methodology; (4) complies with federal acquisition rules, requirements, guidelines, and 

systems acquisition management practices; (5) is approved by IRS, the Department of the 

Treasury, and OMB; and (6) is reviewed by GAO. See Pub. L. No. 109-115, Div. A, Title II, 

November 30, 2005. Currently, IRS’s fiscal year 2007 funding is provided under a Current 

Resolution, Pub. L. No. 109-289, Div. B, September 29, 2006, as amended by Pub. L. No. 

109-383, December 9, 2006, which continues BSM’s funding subject to the “authority and 

conditions” provided in the fiscal year 2006 appropriations act.
Page 2 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

report transmits the materials we used at the briefing and provides the 

recommendation that we made to the Commissioner of Internal Revenue. 

The full briefing materials, including our scope and methodology, are 

reprinted as appendix I. 

In summary, we made the following major points:

• IRS’s fiscal year 2007 plan satisfies each of the six legislative conditions. 

• IRS has made significant progress in implementing our 

recommendations and improving its modernization management 

controls and capabilities, including efforts to institutionalize 

configuration management procedures, develop an updated 

modernization vision and strategy, and improve the quality of the 

program status information provided in the expenditure plan. However, 

controls and capabilities related to requirements development and 

management and post-implementation reviews have not yet been fully 

implemented. In addition, more work remains to be done by the agency 

to fully develop a long-term vision and strategy for completing the BSM 

program, including establishing time frames for consolidating and 

retiring legacy systems. IRS recognizes this and intends to conduct 

further analyses and update its vision and strategy to address the full 

scope of tax administration functions and provide additional details and 

refinements regarding the agency’s plans for legacy system dispositions.

• IRS has made additional progress in implementing BSM projects and in 

meeting cost and schedule commitments, but two key projects 

experienced significant cost overruns. During 2006, IRS deployed 

additional releases of the following modernized systems: the Customer 

Account Data Engine (the new taxpayer information database), 

Modernized e-File (a new electronic filing system), and Filing and 

Payment Compliance (a tax collection case analysis support system). 

Each of the five associated project segments that were delivered during 

2006 were completed on time or within the targeted 10 percent schedule 

variance threshold, and two of them were also completed within the 

targeted 10 percent variance threshold for cost. However, two project 

segments—Modernized e-File Release 3.2, Milestone 4/5 and Customer 

Account Data Engine Release 2.1, Milestone 4—experienced cost 

increases of 36 percent and 15 percent, respectively.

• IRS could improve its reporting of progress in meeting project scope 

expectations. Although IRS’s expenditure plan provides descriptive 
Page 3 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

information on changes in project releases’ scope (i.e., functionality), it 

does not provide a quantitative measure of whether project releases 

delivered planned functionality. Such a measure would be helpful in 

providing the Congress with more complete information on IRS’s 

performance in implementing BSM project releases. IRS recognizes the 

value of having such a measure and, to its credit, recently held a meeting 

to address ways to develop it. Several BSM projects use earned value 

management,2

 a proven technique required by the administration3 for 

measuring cost, schedule, and functional performance. However, earned 

value management data are not reported in IRS’s expenditure plan. 

• Future BSM project releases continue to face significant risks and 

issues, which IRS is addressing. IRS has identified significant risks and 

issues with its future planned system deliveries. For example, IRS has 

reported that there is no slack in the schedule for Release 2.2 of the 

Customer Account Data Engine, and that late-breaking tax law 

legislation or other mandatory filing season changes will have an 

adverse effect on the development and testing schedules. Maintaining 

alignment between the Customer Account Data Engine and Accounts 

Management Services4

 projects is also a key area of concern. The 

agency, however, recognizes the potential impact of these project risks 

and issues on its ability to deliver planned functionality within cost and 

schedule estimates, and has developed mitigation strategies to address 

them.

2

Earned value management is a project management tool that integrates the investment 

scope of work with schedule and cost elements for investment planning and control. This 

method compares the value of work accomplished during a given period with that of the 

work expected in the period. Differences in expectations are measured in both cost and 

schedule variances.

3

Recent Office of Management and Budget guidance directed agencies to implement earned 

value management on major information technology investments, in an effort to meet 

baseline cost, schedule, and performance goals.

4

Accounts Management Services (AMS) is a strategic project intended to deliver improved 

customer support and functionality by leveraging existing IRS applications and new 

technologies to bridge the gap between modernization initiatives, such as the Customer 

Account Data Engine (CADE), and legacy systems. AMS is to enhance CADE by providing 

applications for IRS employees and taxpayers to access, validate, and update accounts on 

demand. The development and implementation of the AMS project is also essential to 

enabling CADE to accept more complicated tax returns and to deal with taxpayer issues. 
Page 4 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

• IRS has made further progress in addressing high-priority BSM program 

improvement initiatives. Its high-priority improvement initiatives 

continue to be an effective means of assessing, prioritizing, and 

incrementally addressing BSM issues and challenges. IRS is currently 

focusing on 13 high-priority initiatives, which it plans to complete by the 

end of March 2007. These initiatives include establishing requirements 

development/management processes and guidance as well as defining 

governance structures and processes across all projects.

Recommendation for 

Executive Action

To allow for more effective congressional oversight of the BSM program, 

we recommend that the Commissioner of Internal Revenue direct the Chief 

Information Officer to take the following action:

• Ensure that future expenditure plans include a quantitative measure of 

progress in meeting project scope expectations. In developing this 

measure, IRS should consider using earned value management, since 

this is a proven technique required by the administration for measuring 

cost, schedule, and functional performance against plans.

Agency Comments In providing written comments on a draft of this report, the Commissioner 

of Internal Revenue agreed with our recommendation. In responding to the 

recommendation, the Commissioner outlined the actions that IRS is 

planning to take to address it, including evaluating available options and 

working with GAO and the Treasury Inspector General for Tax 

Administration to define quantitative measures of project scope. The 

Commissioner’s written comments are reprinted in appendix II.

We are sending copies of this report to the Chairmen and Ranking Minority 

Members of other Senate and House committees and subcommittees that 

have appropriation, authorization, and oversight responsibilities for the 

Internal Revenue Service. We are also sending copies to the Commissioner 

of Internal Revenue, the Secretary of the Treasury, the Chairman of the IRS 

Oversight Board, and the Director of the Office of Management and Budget. 

Copies are also available at no charge on the GAO Web site at 

http://www.gao.gov.

Should you or your offices have questions on matters discussed in this 

report, please contact me at (202) 512-9286 or at pownerd@gao.gov. 
Page 5 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. GAO staff who made 

key contributions to this report are listed in appendix III.

David A. Powner

Director, Information Technology 

 Management Issues
Page 6 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix I

Briefing Slides from the November 14, 2006, Apendxies

Briefing to the Senate and House 

Appropriations Subcommittee Staffs ApendxiI

Review of IRS’s Fiscal Year 2007 

Business Systems Modernization Expenditure Plan 

Briefing for the Staffs of the 

Subcommittee on Transportation, Treasury, the Judiciary, 

Housing and Urban Development, and Related Agencies 

Senate Committee on Appropriations

and

Subcommittee on the Departments of Transportation, Treasury, and 

Housing and Urban Development, the Judiciary, District of Columbia,

and Independent Agencies 

House Committee on Appropriations

November 14, 2006 

This briefing has been modified to incorporate editorial changes and updated information on pages 5, 32, and 38. 

 Page 1 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 7 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Briefing Contents

x Introduction and Objectives 

x Results in Brief 

x Background

x Scope and Methodology 

x Results

x Conclusions

x Recommendation for Executive Action 

x Agency Comments

x Appendixes

x I – Description of Business Systems Modernization (BSM) Projects and Program-Level Initiatives 

x II – Additional Detail on IRS’s Fiscal Year 2007 BSM Expenditure Plan 

x III – IRS Reported Project Cost/Schedule Changes 

 Page 2 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 8 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Introduction and Objectives

 Page 3 of 40 

 

The Internal Revenue Service (IRS) has long relied on obsolete automated systems for key operational and 

financial management functions, and its attempts to modernize these computer systems span several decades. 

IRS’s multibillion-dollar Business Systems Modernization (BSM) program, initiated in fiscal year 1999, is the 

agency’s latest attempt to modernize its systems. IRS contracted with Computer Sciences Corporation (CSC) as 

the prime systems integration support (PRIME) contractor to assist with designing, developing, and integrating a 

new set of information systems that are intended to replace IRS’s aging business and tax processing systems. 

BSM is a high-risk, highly complex program that involves the development and delivery of a number of 

modernized tax administration, internal management, and core infrastructure projects that are intended to provide 

improved and expanded service to taxpayers as well as IRS internal business efficiencies. 

As mandated by IRS’s fiscal year 2006 appropriations act,1

 BSM funds are not available until IRS submits a 

modernization expenditure plan for approval to the congressional appropriations committees. This plan must 

x meet the capital planning and investment control review requirements established by the Office of 

Management and Budget (OMB); 

x comply with IRS’s enterprise architecture;2

x conform with IRS’s enterprise life cycle methodology;3

x comply with federal acquisition rules, requirements, guidelines, and systems acquisition management 

practices;

x be approved by IRS, the Department of the Treasury, and OMB; and 

x be reviewed by GAO. 

1

Pub. Law 109-115, Div. A, Title II, Nov. 30, 2005. Currently, IRS’s fiscal year 2007 funding is provided under a Current Resolution, Pub. Law 109-289, 

Div. B, Sept. 29, 2006, which continues BSM’s funding subject to the “authority and conditions” provided in the fiscal year 2006 appropriations act. 2

An enterprise architecture (EA) is an institutional blueprint defining how an enterprise operates today, in both business and technology terms, and intends 

to operate in the future. An EA also includes a roadmap for transitioning between these environments. 3

IRS refers to its life cycle management program as the enterprise life cycle (ELC). 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 9 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Introduction and Objectives

Since mid-1999, IRS has submitted a series of expenditure or “spending” plans requesting release of BSM 

appropriated funds. To date, about $2.1 billion has been appropriated and released for BSM. 

On September 5, 2006, IRS submitted its fiscal year 2007 expenditure plan to the relevant House and Senate 

appropriations subcommittees, seeking release of $167.3 million from the BSM account. 

As agreed with IRS’s appropriations subcommittees, our objectives were to 

x determine whether IRS’s fiscal year 2007 expenditure plan satisfies the legislative conditions specified in 

IRS’s appropriations act, 

x determine IRS’s progress in implementing our prior recommendations, and 

x provide any other observations about the plan and IRS’s BSM program.

 Page 4 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 10 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results in Brief

IRS’s fiscal year 2007 plan satisfies each of the six legislative conditions. 

IRS has made significant progress in implementing our recommendations and improving its modernization 

management controls and capabilities, including efforts to institutionalize configuration management 

procedures, develop an updated modernization vision and strategy, and improve the quality of the program 

status information provided in the expenditure plan. However, controls and capabilities related to requirements 

development and management and post-implementation reviews have not yet been fully implemented. In 

addition, more work remains to be done by the agency to fully develop a long-term vision and strategy for 

completing the BSM program, including establishing time frames for consolidating and retiring legacy systems.

We have four observations related to the BSM program and fiscal year 2007 expenditure plan: 

x IRS Has Made Additional Progress in Implementing BSM Projects and in Meeting Cost and Schedule 

Commitments, but Two Key Projects Experienced Significant Cost Overruns. During 2006, IRS deployed 

additional releases of the following modernized systems: the Customer Account Data Engine (the new 

taxpayer information database), Modernized e-File (a new electronic filing system), and Filing and Payment 

Compliance (a tax collection case analysis support system). Each of the five associated project segments 

delivered during 2006 were completed on time or within the targeted 10 percent schedule variance 

threshold, and two of them were also completed within the targeted 10 percent variance threshold for cost. 

However, two project segments—Modernized e-File Release 3.2, Milestone 4/5 and Customer Account 

Data Engine Release 2.1, Milestone 4—experienced cost increases of 36 percent and 15 percent, 

respectively.

x IRS Could Improve Its Reporting of Progress in Meeting Project Scope Expectations. IRS's expenditure 

plan provides descriptive information on changes in project releases’ scope (i.e., functionality). However, 

the plan does not provide a quantitative measure of whether project releases delivered planned 

functionality. Such a measure would be helpful in providing the Congress with more complete information 

on IRS's performance in implementing BSM project releases. IRS recognizes the value of having such a 

measure and, to its credit, recently held a meeting to address ways to develop it.

 Page 5 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 11 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results in Brief

x Future BSM Project Releases Continue to Face Significant Risks and Issues, which IRS Is Addressing. IRS 

has identified significant risks and issues with its future planned system deliveries. For example, IRS has 

reported that there is no slack in the schedule for Release 2.2 of the Customer Account Data Engine, which 

is planned to be delivered in January 2007, and that late-breaking tax law legislation or other mandatory 

filing season changes will have an adverse effect on the development and testing schedules. The agency, 

however, recognizes the potential impact of these project risks and issues on its ability to deliver planned 

functionality within cost and schedule estimates, and has developed mitigation strategies to address them. 

x IRS Has Made Further Progress in Addressing High-Priority BSM Program Improvement Initiatives. IRS’s

high-priority improvement initiatives continue to be an effective means of assessing, prioritizing, and 

incrementally addressing BSM issues and challenges. IRS is currently focusing on 13 high-priority 

initiatives, which it plans to complete by the end of March 2007. These initiatives include establishing 

requirements development/management processes and guidance as well as defining governance 

structures and processes across all projects.

To allow for more effective congressional oversight of the BSM program, we are recommending that the 

Commissioner of Internal Revenue direct the Chief Information Officer (CIO) to do the following: 

x ensure that future expenditure plans include a quantitative measure of progress in meeting project scope 

expectations. In developing this measure, IRS should consider using earned value management,4

 since this 

is a proven technique required by the administration for measuring cost, schedule, and functional 

performance against plans. 

4

Earned value management is a project management tool that integrates the investment scope of work with schedule and cost elements for investment

planning and control. This method compares the value of work accomplished during a given period with that of the work expected in the period.

Differences in expectations are measured in both cost and schedule variances.

 Page 6 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 12 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results in Brief

In commenting on a draft of this briefing, the Associate CIO for Applications Development stated that the 

briefing is balanced and accurate and that IRS plans to implement the recommendation. She also provided 

technical comments. 

 Page 7 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 13 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Background

To date, we have reviewed and reported on 13 BSM expenditure plans:

x Since mid-1999, we have reported5

 on the risks associated with IRS’s approach of building systems while

concurrently developing and implementing program management capabilities—for example, having a fully 

operational program management office and implementing its enterprise life cycle (ELC) methodology. 

IRS’s ELC is a structured method for managing system modernization program and project investments 

throughout their life cycles. We reported that attempting to acquire modernized systems before having the 

requisite management capability increases the risk that systems will experience cost, schedule, and 

performance shortfalls. In addition, we have noted numerous modernization management control 

deficiencies and made recommendations to correct them. 

We have also reported6

 that the risk of cost increases and schedule delays associated with building 

systems without the requisite management controls is not as severe early in projects’ life cycles when they 

are being planned (project definition and preliminary system design), but escalates as projects are built 

(detailed design and development) and implemented (deployment). In the case of IRS and its ELC, a key 

point of risk escalation is milestone 3, at the end of the system architecture phase. From this point through 

design and development (milestone 4) to system deployment (milestone 5), risk will increase significantly if 

requisite controls are not in place. In February 2002, we reported that as IRS moved forward with its BSM 

program, it faced increasing risks that it would be unable to deliver promised system capabilities on time 

and within budget. To address the escalating risks facing IRS, we recommended that the agency 

reconsider the planned scope and pace of the BSM program with the goal of better balancing the number 

of system acquisition projects underway and planned with IRS’s capacity to manage the workload. 

5

For example, see GAO, Business Systems Modernization: Results of Review of IRS’ March 2001 Expenditure Plan, GAO-01-716 (Washington, D.C.:

June 29, 2001) and Internal Revenue Service: Progress Continues But Serious Management Challenges Remain, GAO-01-562T (Washington, D.C.: April 

2, 2001).

 Page 8 of 40 

6

For example, see GAO, Tax Systems Modernization: Results of Review of IRS’ Third Expenditure Plan, GAO-01-227 (Washington, D.C.: January 22, 

2001) and Business Systems Modernization: IRS Needs to Better Balance Management Capacity with Systems Acquisition Workload, GAO-02-356

(Washington, D.C.: February 28, 2002).
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 14 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Background

 Page 9 of 40 

 

x In our June 2003 report,7 we identified key IRS projects that were approaching or had passed milestone 4 

that were experiencing cost, schedule, and performance shortfalls, and concluded that program risks were 

heightened. In our November 2004 report,8 we stated that key agency projects were continuing to incur 

significant cost increases and schedule delays, and that independent assessments of the BSM program 

had identified significant weaknesses and risks, consistent with our prior reviews.

x In our July 2005 report,9

 we noted that IRS had made progress in implementing our prior recommendations 

to improve its modernization management controls and capabilities; however, certain controls and 

capabilities related to configuration management, human capital management, cost and schedule 

estimating, contract management, and post-implementation reviews had not yet been fully implemented or 

institutionalized. In addition, we noted that IRS had made progress toward addressing issues raised in 

independent BSM assessments and implementing program improvement initiatives, but significant 

challenges and high-priority risks remained. 

We also reported that although IRS had deployed the initial phases of several modernized systems and 

met short-term cost and schedule estimates, much more work remained to be done to complete the 

modernization, and challenges confronted the agency in meeting its longer-term cost and schedule 

estimates. In addition, we reported that in response to its assessment of the PRIME contractor’s 

performance and budget reductions, IRS (1) was shifting significant BSM program responsibilities from the 

contractor to the agency, and (2) had made adjustments to project funding allocations and future delivery 

schedules, including suspending work on the Custodial Accounting Project and postponing future releases 

of the Integrated Financial System indefinitely. Finally, we concluded that the BSM vision and strategy was 

no longer current given project delays, and recommended that the agency fully revisit it and develop a new 

set of long-term program goals, strategies, and plans that is consistent with the budgetary outlook and 

IRS’s management capabilities. 

7

GAO, Business Systems Modernization: IRS Has Made Significant Progress in Improving Its Management Controls, but Risks Remain, GAO-03-768 

(Washington, D.C.: June 27, 2003). 

8

GAO, Business Systems Modernization: IRS’s Fiscal Year 2004 Expenditure Plan, GAO-05-46 (Washington, D.C.: November 17, 2004). 9

GAO, Business Systems Modernization: Internal Revenue Service’s Fiscal Year 2005 Expenditure Plan, GAO-05-774 (Washington, D.C.: July 22, 2005). 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 15 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Background

 Page 10 of 40 

 

x In our February 2006 report,10 we noted that IRS had made further progress in implementing BSM, but 

some projects did not meet short-term cost and schedule commitments. In addition, we noted that future 

project deliveries faced significant risks and issues, which the agency was actively working to mitigate. We 

also reported that IRS had made additional progress in addressing high-priority program improvement 

initiatives; however, much more work remained for the agency to fully address BSM program issues and 

challenges.

In addition, we reported that, in response to our prior recommendation, IRS was developing a new 

Modernization Vision and Strategy to address BSM program changes and provide a modernization 

roadmap. Finally, we concluded that the fiscal year 2006 expenditure plan submitted to the Congress 

contained outdated program status information and omitted key details concerning deferred BSM 

functionality. To allow for effective congressional oversight of the BSM program, we recommended that the 

agency ensure that future expenditure plans provide current and complete program status information and 

report any changes to prior commitments concerning the delivery of BSM project functionality. 

IRS’s fiscal year 2007 expenditure plan describes the agency’s efforts to 

x continue ongoing program-level initiatives (e.g., Architecture & Integration and Program Management) and 

core infrastructure projects (e.g., Infrastructure Shared Services),

x continue three tax administration project releases (Filing and Payment Compliance Release 1.2,

Modernized e-File Release 4, and Customer Account Data Engine Release 2.2) to their next milestones, 

and

x begin six new tax administration project releases (Modernized e-File Release 5; Customer Account Data 

Engine Releases 3.1, 3.2, 4, and 5; and Accounts Management Services Release 1.111).

Table 1 shows a financial summary of the plan.

10GAO, Business Systems Modernization: Internal Revenue Service’s Fiscal Year 2006 Expenditure Plan, GAO-06-360 (Washington, D.C.: February 21, 

2006). 

11IRS plans to use unobligated fiscal year 2005 Management Reserve funding to begin work on the Accounts Management Services project. 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 16 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Background

Table 1: Summary of IRS’s Fiscal Year 2007 BSM Expenditure Plan (in thousands of dollars)a

Amount

requested

Tax administration projects

Filing and Payment Compliance 3,500

Modernized e-File 20,000

Customer Account Data Engine 58,500

Subtotal – tax administration projects 82,000

Core infrastructure projects

Development, Integration and Testing Environments (DITE) 16,000

Infrastructure Shared Services (ISS) 27,000

DITE/ISS risk adjustment 500

Subtotal – core infrastructure projects 43,500

Architecture, integration & management

Architecture & Integration 15,220

Business Integration 5,250

Business Rules 3,500

Management Processes 3,920

Federally Funded Research and Development Center—MITRE 7,600

Program Management 3,270

Architecture, integration & management risk adjustment 740

Subtotal – architecture, integration & management 39,500

Management reserve 2,310

Total $167,310

Source: IRS. 

a

See appendix I for a description of each BSM project and program-level initiative. See appendix II for additional detail on the plan.

 Page 11 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 17 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Scope and Methodology

To accomplish our objectives, we

x reviewed the fiscal year 2007 expenditure plan submitted by IRS in September 2006; 

x analyzed the plan against the legislative conditions to identify any variances; 

x interviewed IRS program and project management officials to corroborate our understanding of the plan 

and other BSM activities; 

x analyzed available evidence on recent agency efforts to implement our prior recommendations, including 

progress on improving its modernization management controls and capabilities;

x reviewed and analyzed modernization program review and project management briefings and related 

documentation to assess program/project status and associated issues and risks; and 

x reviewed program management reports to assess the progress IRS has made in completing actions and 

implementing program management improvements related to the BSM Highest Priority Initiatives. 

To assess the reliability of the cost and schedule information contained in this expenditure plan, we 

interviewed IRS officials in order to gain an understanding of the data and discuss our use of the data. In 

addition, we checked that information in the plan was consistent with information contained in IRS internal 

briefings.

We performed our work between September and November 2006, in Washington, D.C., in accordance with 

generally accepted government auditing standards. 

 Page 12 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 18 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Objective 1: The plan satisfies the conditions in IRS’s Fiscal Year 2007 appropriations act. 

Table 2: Fiscal Year 2007 Expenditure Plan Provisions for Satisfying Legislative Conditions 

Source: IRS’s fiscal year 2006 appropriations act (Pub. Law 109-115), fiscal year 2007 Current Resolution (Pub. Law 109-289), and GAO analysis of IRS data. 

Legislative conditions Expenditure plan provisions

1. Meets OMB capital

planning and investment

control review

requirements

IRS’s fiscal year 2007 expenditure plan identifies funding required for managing information technology (IT)

investments as part of a single portfolio through its capital planning and investment control process. This 

includes conducting periodic reviews to select and control IT investments.

2. Complies with IRS’s 

enterprise architecture

The plan identifies funding required to continue definition and implementation of the enterprise architecture

(EA). For example, it identifies funding needed for 

x finalizing and publishing updates to the EA based on change requests,

x supporting the performance of EA compliance certification activities, and 

x improving the IRS Enterprise Transition Strategy and Release Architecture.

3. Conforms with IRS’s

enterprise life cycle 

methodology

The plan identifies funding required for meeting the requirements in IRS’s enterprise life cycle (ELC) 

management program. For example, the plan calls for

x maintaining responsibility for coordinating, tracking, and integrating all programwide costs, schedules,

releases, issues, and risks and 

x maintaining and enhancing the ELC. 

4. Complies with the 

acquisition rules,

requirements, guidelines,

and systems acquisition

management practices of 

the federal government

As part of the ELC, IRS has defined processes, roles, and responsibilities for implementing Carnegie Mellon

University’s Software Engineering Institute (SEI) Software Acquisition Capability Maturity ModelTM practices

for the key process areas within the repeatable level (level 2) of the 5-stage model.a

 These practices are

consistent with federal acquisition requirements and management practices, and the plan calls for 

implementation of the ELC on all projects. Further, all PRIME contractor cost reimbursement task orders are

subject to a final independent audit by the Defense Contract Audit Agency to ensure that costs are incurred

only for tasks actually completed on the contract.

5. Approved by IRS, the 

Department of the 

Treasury, and OMB 

x IRS – May 19, 2006 

x Treasury – July 13, 2006

x OMB – August 18, 2006 

6. Reviewed by GAO x GAO – November 14, 2006, briefing to IRS’s appropriations subcommittees

a

These are acquisition planning, solicitation, requirements development and management, project management, contract tracking and oversight,

 evaluation, and transition to support.

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Appendix I

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Appropriations Subcommittee Staffs

Page 19 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Objective 2: IRS has made significant progress in implementing our prior recommendations and 

improving its modernization management controls and capabilities, although some have not yet been 

fully addressed. 

x IRS has made significant progress in addressing our prior recommendations and improving its 

modernization management controls and capabilities, as the following table illustrates: 

 Table 3: Status of IRS Progress in Implementing Prior GAO Recommendations 

Prior GAO recommendations Implemented In progress Status as of fiscal year 2007 plan 

Configuration management 

Institutionalize configuration

management (CM) procedures for 

the Business Systems 

Modernization Office

 Since January 2005, IRS has (1) developed an 

implementation guide and checklist for establishing

CM across the organization, (2) developed and 

conducted various CM training modules,

(3) established several Configuration Control 

Boards, (4) conducted additional CM process 

compliance assessments on BSM projects, and

(5) revised the compliance assessment procedure 

to assign the issues and risks resulting from these 

reviews to the applicable projects for mitigation. 

Future plans include continuing CM process 

compliance assessments (four per year, depending 

on resources) on modernization projects both under 

development as well as transitioned to production.

Human capital management 

Implement plans for obtaining, 

developing, and retaining 

requisite human capital resources 

 In October 2005, IRS completed its BSM Human 

Capital Strategy, which includes a detailed 

recruitment plan to bring necessary personnel on 

board as well as strategic plans for employee 

training, leadership development, and workforce 

retention. IRS is implementing its strategy to

 Page 14 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 20 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Prior GAO recommendations Implemented In progress Status as of fiscal year 2007 plan 

develop and maintain a knowledgeable and highlyskilled workforce to more effectively manage the 

BSM program and support future operations of 

modernized IT systems. For example, within the 

new Applications Development (AD) organization 

(formed by merging BSM and the Business Systems 

Development production information applications

systems support organization), IRS has established 

a Centers of Excellence office to, among other 

things, (1) determine required skill sets and level of 

competency for each area of expertise and grade 

level in the AD organization and (2) develop a 

recruitment strategy and define training 

requirements. The AD organization recently hired 

and trained 25 entry-level programmers to support 

project development efforts. 

Cost and schedule estimation

Implement effective procedures 

for validating contractordeveloped cost and schedule 

estimates

 During 2005 and 2006, IRS has taken a number of 

actions to further improve the BSM cost and 

schedule estimation process and procedures. For 

example, IRS mapped its existing estimation 

capabilities to the Software Engineering Institute's 

requisites for reliable estimating processes, 

identified and prioritized gaps between the agency's 

existing capabilities and industry best practices, and 

developed a phased improvement approach. 

Consistent with its prioritized phased approach, IRS 

has contracted with an estimation support contractor 

to augment the agency’s project estimation 

capability and has established a Cost and Schedule 

Estimation Support Services Concept of Operations 

 Page 15 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 21 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Prior GAO recommendations Implemented In progress Status as of fiscal year 2007 plan 

identifying support paths for requesting, managing, 

and overseeing in-house and contractor estimation 

support. In addition, the agency is creating an 

estimation data repository to capture historical cost 

and schedule data to enable identification and 

extraction of relevant baseline data to support 

estimation development. In a related effort, IRS has 

also developed and implemented, in May 2006, a 

scalable Basis of Estimate guide to promote uniform 

standards for development and submission of 

supporting documentation to enable comprehensive 

evaluation, replication, and assessment of 

estimates. IRS plans to continue to leverage and 

expand upon its current capabilities, within resource 

constraints, to achieve a cost-effective BSM cost 

and schedule estimating system. 

Contract management

Establish and implement a 

process for determining the type 

of task order to be awarded in 

acquiring modernized systems 

 During fiscal years 2005 and 2006, IRS (1) issued a 

Milestone 4A Statement of Work template for use in 

developing performance-based task orders,

(2) developed revised guidance on the selection of 

appropriate contract types for BSM task orders,

(3) issued a BSM performance monitoring directive 

establishing the requirement for preparing task 

order monitoring plans, (4) conducted performancebased contracting and performance monitoring 

training sessions, and (5) performed semiannual 

compliance assessments. As of September 2005, 

four assessments had been completed on a total of 

19 statements of work and 18 monitoring plans, 

resulting in a cumulative average of about 80 

 Page 16 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 22 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Prior GAO recommendations Implemented In progress Status as of fiscal year 2007 plan 

percent compliance with the applicable 

performance-based contracting templates and 

guidance.

Requirements development and 

management

Ensure that BSM completes the 

delivery of policies and

procedures for requirements 

development and management as 

planned

 (See p. 19) 

Immediately implement interim 

policies while the final policies and

procedures are being developed 

 (See p. 19) 

Post-implementation reviews 

Perform analyses of investment 

data to determine whether 

completed projects have achieved 

expected benefits 

 (See pp. 20-21) 

Modernization vision and strategy 

Fully revisit the vision and 

strategy for the BSM program and 

develop a new set of long-term 

goals, strategies, and plans that 

are consistent with the budgetary 

outlook and IRS’s management 

capabilities

 (See pp. 22-24) 

 Page 17 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 23 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Prior GAO recommendations Implemented In progress Status as of fiscal year 2007 plan 

Expenditure plan timeliness and 

completeness

Ensure that future expenditure

plans submitted to the 

congressional appropriations

subcommittees provide current 

and complete program status 

information and report any 

changes to prior commitments 

concerning the delivery of BSM 

project functionality 

 In February 2006, IRS coordinated with the 

Department of the Treasury and OMB to develop a 

timeline and process to effect timelier review and 

submission of future expenditure plans. In April 

2006, IRS issued a directive that established a 

process to ensure prompt notification and 

centralized recording of all changes to BSM projects 

and program-level initiatives. Implementation of this 

new policy facilitated near real-time updates to 

program and project status information contained in 

the fiscal year 2007 expenditure plan throughout the 

development and review process. Also, the fiscal 

year 2007 plan includes a new change request 

summary that provides information on BSM project 

scope changes.

Source: GAO analysis of IRS data.

 Page 18 of 40 
Appendix I

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Appropriations Subcommittee Staffs

Page 24 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

 Page 19 of 40 

 

Requirements Development and Management 

According to the Software Engineering Institute’s (SEI) Capability Maturity Model Integration12 (CMMIsm), the 

requirements for a system describe the functionality needed to meet user needs and perform as intended in 

the operational environment. A disciplined process for developing and managing requirements can help 

reduce the risk of developing or acquiring a system. In addition, a well-defined and managed requirements 

baseline can improve understanding among stakeholders and increase stakeholder buy-in and acceptance of 

the resulting system.

In March 2006, we reported13 that BSM did not yet have adequate policies and procedures in place to guide its 

systems modernization projects in developing and managing requirements. As a result of the lack of policies 

and procedures, BSM projects did not consistently follow disciplined requirements development and 

management practices. We recommended that IRS ensure that BSM completes the delivery of policies and 

procedures for requirements development and management as planned. We also recommended that IRS 

immediately implement interim guidance for ongoing BSM projects while the final policies and procedures are 

being developed.

In response to our first recommendation, IRS has established a schedule for developing and issuing detailed 

requirements management and development policies, procedures, and guidance. High-level policies have 

been issued, and lower level policies, procedures, and templates are being developed. IRS expects to 

complete the development of these items by March 2007. In response to our second recommendation, IRS 

has made draft policies and procedures available to BSM projects through the agency’s Business Rules and 

Requirements Management online repository. Until IRS completes the development of detailed policies and 

procedures to ensure disciplined requirements development and management processes, BSM projects will 

continue to face risks, including cost overruns, schedule delays, and performance shortfalls.

12The CMMI is SEI’s process model, which describes how to develop the processes needed for software development and specific practices that 

organizations should follow. 

13GAO, Business Systems Modernization: IRS Needs to Complete Recent Efforts to Develop Policies and Procedures to Guide Requirements 

Development and Management, GAO-06-310 (Washington, D.C.: March 20, 2006). 
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Briefing Slides from the November 14, 2006, 

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Page 25 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Post-Implementation Reviews

Conducting post-implementation reviews (PIR) is a process for reviewing IT projects to identify lessons 

learned from investments and determine whether the benefits anticipated in the business case for the 

investment have been realized. 

OMB Guidance,14 GAO’s Information Technology Investment Framework15, and IRS’s ELC require that post 

implementation reviews be performed on deployed information systems. According to our framework, the 

reviews should include (1) the collection, evaluation, and analysis of both quantitative and qualitative 

investment data, and (2) documentation of lessons learned and recommendations for improving the 

information technology investment process. 

In November 2004, we reported16 that IRS had performed PIRs on deployed projects; however, these reviews 

were incomplete and did not follow IRS’s procedure. Although the PIRs documented lessons learned in 

implementing the projects and provided recommendations for future improvements, the reviews did not (1) 

compare and analyze actual versus planned benefits and systems performance, (2) determine the validity of 

original business assumptions, or (3) compare and analyze actual versus planned cost and schedule 

estimates. We recommended that future post-implementation reviews of deployed BSM projects include an 

analysis of quantitative and qualitative investment data to determine whether expected benefits were 

achieved.

In July 2005, we reported17 that IRS had issued a new procedure for conducting post-milestone reviews and 

PIRs on BSM projects, which we found to be compliant with established federal guidance. The post-milestone 

14Executive Office of the President, Office of Management and Budget, Evaluating Information Technology Investments: A Practical Guide (November

1995) and Circular A-130, Transmittal Memorandum #4, Management of Federal Information Resources (November 2000). 15GAO, Information Technology Investment Management: A Framework for Assessing and Improving Process Maturity, GAO-04-394G (Washington, D.C.: 

March 2004).

16GAO-05-46.

17GAO-05-774.

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Appendix I

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Appropriations Subcommittee Staffs

Page 26 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

reviews are to focus on the processes used in systems development, while the PIRs are to focus on outcomes 

related to expected business benefits, user expectations, and technical performance requirements.

Between May and July 2006, IRS conducted a pilot PIR on the e-Services Transcript Delivery System, utilizing 

the new procedure. The pilot review identified process improvement opportunities that will be considered 

during a planned PIR redesign effort.

However, IRS reported that no additional PIRs are scheduled to be conducted at this time, due to fiscal year 

2007 resource constraints and other priorities. By not performing PIRs on all deployed BSM projects, the 

agency lacks important information on whether expected benefits have been achieved or expectations have 

been met for these projects. 

 Page 21 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 27 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Modernization Vision and Strategy 

In July 2005, we reported18 that the significant delays and other substantive changes that the BSM program 

had experienced since the development of the initial BSM vision and strategy in 2000 and 2001 indicated a 

need for IRS to revisit its long-term goals, strategies, and plans for the modernization program. To address the 

many changes associated with the BSM and clearly describe what the modernization program is intended to 

accomplish, when it will be completed, and at what cost, we recommended that IRS fully revisit the vision and 

strategy for the BSM program and develop a new set of long-term goals, strategies, and plans consistent with 

the budgetary outlook and IRS’s management capabilities.

During fiscal year 2006, IRS conducted the initial cycle of a new IT Modernization Vision and Strategy (MV&S) 

activity. The MV&S initiative established a 5-year plan (also known as the Enterprise Transition Strategy) to 

guide IT investment decisions during fiscal years 2007 through 2011 and address priorities around 

modernizing front-line tax administration functions and the supporting technical capabilities provided by the 

infrastructure and security. Key characteristics of the new vision and strategy include a partnership among 

IRS’s IT and business leadership; an emphasis on delivering smaller, more frequent incremental releases; the 

leveraging of existing systems (or components of existing systems) where appropriate; and a unified, portfoliolevel view of investments.

The MV&S framework is built on a functional segmentation of the IRS into the following core mission business 

functions that directly relate to front-line tax administration: 

x Submissions Processing, 

x Manage Taxpayer Accounts, 

x Customer Service, 

x Reporting Compliance, 

x Filing and Payment Compliance, and 

x Criminal Investigation. 

18GAO-05-774.

 Page 22 of 40 
Appendix I

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Appropriations Subcommittee Staffs

Page 28 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

 Page 23 of 40 

 

These six segments, referred to as “Business Domains”, reflect a purely functional, rather than organizational, 

view of the business. They are supported by services necessary to provide for the effective and secure 

execution of the core mission-critical business functions. These services are addressed by two “Service 

Domains” that provide cross-cutting data, infrastructure, and security services as well as common business 

functions, which can be leveraged to support the Business Domains. Within each domain, opportunities have 

been defined that reflect the priorities that are expected to yield the greatest benefit to taxpayers and the IRS. 

The agency’s Enterprise Transition Strategy describes the overall IRS vision and strategy and how existing 

and proposed investments align to it. It also provides an organization-wide view of programs and projects, 

including known dependencies, across the agency, and is intended to give leadership the visibility to use the 

agency’s enterprise architecture for organization-wide planning. The Enterprise Transition Strategy documents 

the scope, business challenges, current and transition architectures, redesign opportunities, strategy, 

proposed projects and associated release strategies (e.g., Accounts Management Services19), and the 

planned evolution (i.e., reuse, consolidation, retirement) of related key current production environment (CPE) 

systems for each of the MV&S Business Domains. 

IRS’s MV&S initiative is intended to be an annual process through which the agency integrates the strategic 

plans, business concepts of operations, IT planning roadmaps, and proposed investments into a set of 

integrated strategies and investment proposals for each domain and ultimately into a proposed IT investment 

portfolio. During the initial fiscal year 2006 MV&S cycle, IRS recognized that the six Business Domains and 

two Service Domains addressed did not represent the entire scope of IRS activities, but felt that the limited 

scope was appropriate, given time and resource constraints. 

19Accounts Management Services (AMS) is a strategic project intended to deliver improved customer support by leveraging legacy systems. As a part of 

the fiscal year 2006 MV&S process, a strategy was developed to create and retain Customer Account Data Engine (CADE) account data by processing 

on-line transactions. The development and implementation of the AMS project is integral to this strategy and essential to enabling CADE to accept more 

complicated tax returns and to deal with taxpayer issues. AMS project releases are to provide functional components synchronized with the CADE 

development schedule as well as other components delivered independent of the CADE schedule. 
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Appropriations Subcommittee Staffs

Page 29 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

For the current MV&S cycle, IRS is adding a Business Domain (Internal Management) and splitting one of the 

Service Domains into three separate domains (Data, Infrastructure, and Security). Of these redefined Service 

Domains, the Security domain is being addressed during the current cycle. Additional refinements and 

extensions are anticipated in future cycles to address additional Business Domains (e.g., Financial 

Management) and develop a more comprehensive plan for the Service Domains. IRS expects to regularly 

revise and update the content of the MV&S to address the full scope of tax administration functions and the 

changing business priorities.

In addition, IRS recognizes the need to proactively plan for the disposition (i.e., consolidation, retirement, or 

potential reuse) of each of the over 700 legacy systems comprising the current production environment, but 

noted that it has not been able to conduct all of the necessary detailed, highly complex analyses due to 

resource constraints. The CPE system evolution information contained in the current (June 2006) version of 

the Enterprise Transition Strategy is preliminary and is largely driven by the planning activities of individual 

modernization projects and, therefore, limited to plans for related key CPE systems. IRS intends to conduct 

further analyses and provide additional details and refinements in the future regarding its plans for legacy 

system dispositions. 

IRS’s new IT MV&S and associated 5-year plan embodied in the Enterprise Transition Strategy represent 

significant progress toward defining the agency’s future plans for the modernization program. However, more 

work remains for IRS to fully address our prior recommendation of developing a long-term vision and strategy 

for completing BSM, including establishing time frames for consolidating and retiring legacy systems.

 Page 24 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 30 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Objective 3: Observations about IRS’s BSM Program and Expenditure Plan

Observation 1: IRS Has Made Additional Progress in Implementing BSM Projects and in Meeting Cost and 

Schedule Commitments, but Two Key Projects Experienced Significant Cost Overruns. 

During 2006, IRS’s BSM program has delivered additional releases of the following modernized systems that 

have provided benefits to taxpayers and the agency: 

x Customer Account Data Engine (CADE). CADE is intended to provide the modernized database 

foundation that will eventually replace IRS’s antiquated Master File processing system, which contains the 

agency’s repository of taxpayer information, and, therefore, is the BSM program’s cornerstone and highest 

priority project. CADE facilitates faster refund processing and timelier response to taxpayer inquiries. In 

January 2006, IRS implemented Release 1.3.2 of CADE, which was used to process a subset of filing year 

2006 Form 1040EZ, 1040, and 1040A tax returns with no schedules for single taxpayers with refund or 

even-balance returns and no dependents. In September 2006, IRS deployed CADE Release 2.1, which 

adds the capability to process Form 1040 and 1040A tax returns with certain schedules and supporting 

forms as well as returns for taxpayers filing as head of household. According to IRS, CADE has processed 

about 7.4 million tax returns and issued about 6.6 million refunds totaling over $3.4 billion during the 2006 

filing season.

x Modernized e-File (MeF). This project is intended to initially provide electronic filing for large corporations, 

small businesses, and tax-exempt organizations and ultimately replace the 1040 e-file program. In March 

2006, IRS completed MeF Release 3.2, which enables corporations and tax-exempt organizations to file 

joint federal/state tax returns electronically and allows states to retrieve their applicable returns from MeF. 

IRS reported that, during the 2006 filing season, over 900,000 tax returns have been received using MeF,

including over 13,000 mandated returns (corporations with assets of over $50 million) and about 600 state 

returns, which have been made available to the three participating states (as of September 24, 2006).

 Page 25 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

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Appropriations Subcommittee Staffs

Page 31 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

x Filing and Payment Compliance (F&PC). F&PC is intended to provide support for detecting, scoring, and 

working non-filer (filing compliance) and delinquency (payment compliance) cases. F&PC Release 1.1, 

which began full production operation in September 2006, provides advanced software to analyze tax 

collection cases and separate the complex cases requiring IRS involvement from the simpler (balance due) 

cases that can be handled by private collection agencies (PCAs) for case resolution. On September 7, 

2006, an initial inventory of over 11,500 collection cases was delivered to the three PCAs for processing.

IRS continued to make progress in meeting cost and schedule commitments for completed and ongoing 

project releases during 2006, but two key projects experienced significant cost increases. Our analysis of 

IRS’s reported project costs and completion dates shows that each of the five project segments delivered 

during 2006 were completed on time or within the targeted 10 percent schedule variance threshold, and two of 

them were also completed within the targeted 10 percent variance threshold for cost. For example, F&PC 

Release 1.2 exited Milestones 3 and 4a on time, and Milestone 4a was completed at the estimated project 

cost. Also, CADE Release 1.3.2 was delivered within the targeted 10 percent variance threshold for both cost 

and schedule. However, two project segments—MeF Release 3.2, Milestone 4/5 and CADE Release 2.1, 

Milestone 4—experienced cost increases of 36 percent and 15 percent, respectively, against the original 

commitments. The MeF project cost increase was due to unplanned functionality related to security and large 

file/mandate requirements, stress test requirements, the large number of change requests received late in 

development, and higher than expected defect reports in production. The CADE project cost overrun was 

driven by restart/rework of the business process engineering effort and the associated Design Specification

Report. Appendix III provides the complete list of BSM project cost and schedule changes reported by IRS. 

 Page 26 of 40 
Appendix I

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Page 32 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

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Observation 2: IRS Could Improve Its Reporting of Progress in Meeting Project Scope Expectations.

x IRS's expenditure plan includes tables showing, for each project release segment, the status of activities 

that were planned as of the fiscal year 2006 expenditure plan and an explanation of changes in these 

plans, if any. The expenditure plan also features a list of changes (i.e., additions, deletions, and deferrals) 

to requirements/scope for its project releases. While the tables and list provide information on the status of 

project releases, they do not provide a quantitative measure of IRS's progress in meeting scope 

expectations. Such a measure would help to provide the Congress with more complete information on 

IRS's performance in delivering BSM project releases. IRS recognizes the value of having a quantitative 

measure of progress in meeting functional performance, and, to its credit, recently held a meeting to 

address ways to develop it. Several BSM projects use earned value management,20 a proven technique 

required by the administration21 for measuring cost, schedule, and functional performance. However, 

earned value management data are not reported in IRS’s expenditure plan. 

20Earned value management is a project management tool that integrates the investment scope of work with schedule and cost elements for investment

planning and control. This method compares the value of work accomplished during a given period with that of the work expected in the period.

Differences in expectations are measured in both cost and schedule variances.

21Recent OMB guidance directed agencies to implement earned value management on major IT investments, in an effort to meet baseline cost, schedule,

and performance goals.

 Page 27 of 40 
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Observation 3: Future BSM Project Releases Continue to Face Significant Risks and Issues, which IRS Is 

Addressing.

IRS has reported that significant challenges and risks confront future planned project releases. For example, 

x Customer Account Data Engine Release 2.2. IRS has reported that there is no slack in the schedule for 

Release 2.2, which is planned to be delivered in January 2007. Late-breaking tax law legislation or other 

mandatory filing season changes will have an adverse effect on the development and testing schedules. 

Also, the implementation of last minute changes to the Telephone Excise Tax Refund (TETR)22 functionality 

has the potential to impact Release 2.2 scope and schedule. 

x Customer Account Data Engine Release 3. According to IRS, potential scope problems could result in 

schedule delays and loss of planned functionality for Releases 3.1 and 3.2, which are currently scheduled 

to be deployed in August 2007 and December 2007, respectively. Maintaining alignment with the Accounts 

Management Services project is also a key area of concern.

x Accounts Management Services Release 1.1. If the Release Content Master Plans for the Accounts 

Management Services and Customer Account Data Engine projects are not aligned, then a coordinated 

release structure may not be possible, and delivery of Release 1.1 functionality, planned for September 

2007, may be impacted. Also, if additional resources, including technical project staff, are not provided to 

the Accounts Management Services project office, then the project may experience significant schedule 

delays.

x Filing and Payment Compliance Release 1.2. IRS reports that Release 1.2, which is scheduled to be 

deployed in January 2007, faces risks associated with the delivery of business and system requirements. 

 Page 28 of 40 

22Under the TETR, taxpayers are being refunded the telephone excise tax they have paid over the last three years, including interest. Individuals and 

businesses are affected. This is a one time event. 
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Page 34 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

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x Modernized e-File Release 4. Release 4, which is planned to be completed in March 2007, also faces 

critical risks, including the potential impact of the Excise Tax e-File and Compliance (ETEC)23 application on 

the Modernized e-File development and infrastructure as well as tight budget constraints and the potential 

for shortfalls if additional issues arise.

IRS recognizes the potential impact of these project risks and issues on its ability to deliver planned 

functionality within cost and schedule estimates, and has developed mitigation strategies to address them. 

 Page 29 of 40 

23The ETEC project is funded by the Department of Transportation and supports the compliance of highway use and fuel excise tax. It leverages the 

Modernized e-File capabilities for filing excise tax forms. 
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Page 35 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

Observation 4: IRS Has Made Further Progress in Addressing High-Priority BSM Program Improvement 

Initiatives.

During 2004, the Associate CIO for BSM established the following seven key focus areas for improving IRS’s 

capability to design, develop, and deliver modernized IT systems: 

x Staffing and Skill Sets,

x Contractor Management, 

x Requirements and Demand Management, 

x Systems Engineering, 

x Project Management Disciplines, 

x Communication and Collaboration, and

x Empowerment/Accountability.

Corrective actions recommended by GAO and the Treasury Inspector General for Tax Administration for 

improving modernization management controls and processes as well as several additional IRS-defined 

improvement initiatives were then mapped to these key focus areas to form a BSM program improvement 

framework.

In August 2004, the Associate CIO initiated an incremental approach to assess, prioritize, and address the 

“highest priority initiatives” from the program improvement framework in 6-month cycles. As of October 2005, 

IRS reported it had completed 27 highest priority initiatives during the first two cycles, and was in the process 

of addressing a third set of 22, which was planned to be completed by the end of March 2006. In April 2006, 

IRS reported that 17 of these 22 initiatives had been completed and closed, 1 initiative had been dropped due 

to a lack of resources, and the remaining 4 were being carried over to the next 6-month period.

 Page 30 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 36 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Results

In October 2006, IRS reported that it had successfully completed and closed its fourth set of 15 highest priority 

initiatives, which included efforts related to implementing an Applications Development productivity 

measurement system, integrating the change management process into the configuration management

function, institutionalizing the Modernization Vision and Strategy approach and integrating it with IRS’s capital 

planning and investment control process, hiring and training 25 entry-level programmers to support 

development of the Customer Account Data Engine, and developing an electronic filing strategy through 2010. 

IRS is currently focusing on its fifth set of 13 newly selected high priority improvement initiatives, which are 

scheduled to be completed by the end of March 2007. These initiatives involve functions within the agency’s 

Applications Development and Enterprise Services organizations and include 

x defining the governance structures and process across all projects, 

x establishing requirements development processes as well as guidance on requirements traceability and 

tracking the cost/schedule impact of requirements changes (in response to our prior recommendation),

x continuing to strengthen Enterprise Services technical capabilities through filling current systems 

integration vacancies,

x aligning IRS’s Service Oriented Architecture with the Modernization Vision and Strategy, and 

x refining the new Applications Development organization. 

IRS’s program improvement process continues to be an effective means of regularly assessing, prioritizing, 

and incrementally addressing BSM issues and challenges.

 Page 31 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 37 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Conclusions

IRS’s fiscal year 2007 plan satisfies the legislative conditions. 

Although IRS has made significant progress in addressing our recommendations to improve its modernization 

management controls and capabilities, critical controls and capabilities have not yet been fully implemented.

The new IT Modernization Vision and Strategy represents a significant step towards defining IRS’s future 

plans for the modernization program; however, more work remains for the agency to fully develop the longterm strategy for completing BSM, including establishing time frames for consolidating and retiring legacy 

systems. IRS recognizes this and intends to conduct further analyses and update its vision and strategy to 

address the full scope of tax administration functions and provide additional details and refinements regarding 

the agency’s plans for legacy system dispositions. 

IRS has made further progress in implementing BSM and in meeting cost and schedule commitments during 

2006, but two key projects experienced significant cost overruns. While the expenditure plan includes 

information on changes in projects’ scope, it does not provide the quantitative measure of progress in 

delivering planned functionality that earned value management, for example, provides.

Future project deliveries continue to face significant risks and issues, which the agency is actively working to 

mitigate. In addition, IRS has significant program challenges and issues that it must resolve, and has 

established an effective process for continual improvement to incrementally assess, prioritize, and address 

them.

 Page 32 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 38 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Recommendation for Executive Action

To allow for more effective congressional oversight of the BSM program, we recommend that the 

Commissioner of Internal Revenue direct the CIO to take the following action: 

x ensure that future expenditure plans include a quantitative measure of progress in meeting project scope 

expectations. In developing this measure, IRS should consider using earned value management, since this 

is a proven technique required by the administration for measuring cost, schedule, and functional 

performance against plans.

 Page 33 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 39 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Agency Comments

In providing written comments on a draft of this briefing, the Associate CIO for Applications Development 

stated that the briefing is balanced and accurate and that IRS plans to implement the recommendation. She 

also provided specific technical comments that we have incorporated into the briefing, as appropriate.

 Page 34 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 40 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix I: Description of Business Systems Modernization (BSM) 

 Projects and Program-Level Initiatives

Proposed modernization initiative Description

Tax administration projects 

Filing and Payment Compliance (F&PC) Is to provide support for detecting, scoring, and working nonfiler (filing 

compliance) and delinquency (payment compliance) cases through advanced

case selection methods.

Modernized e-File Is to provide a single standard for filing electronic tax returns. Initial releases will 

address large corporations, small businesses, and tax-exempt organizations. Its 

ultimate goal is the conversion of IRS’s 1040 e-file program. 

Customer Account Data Engine (CADE) Is to build the modernized database foundation to replace the existing Master 

File processing system that contains the repository of taxpayer information.

Accounts Management Services (AMS) Is to deliver improved customer support and functionality by leveraging existing 

IRS applications (Desktop Integration and Correspondence Imaging System) 

and new technologies to bridge the gap between modernization initiatives, such 

as CADE, and legacy systems. AMS is to enhance CADE by providing 

applications for IRS employees and taxpayers to access, validate, and update

accounts on demand. 

Core infrastructure projects

Development, Integration, & Testing

Environments

Is to provide oversight for laboratory environments that support evaluation,

development, and testing of components from multiple projects: (1) Virtual

Development Environment provides a software development environment and a 

standardized set of tools; (2) Enterprise Integration and Test Environment

provides an integration and testing environment for all projects.

Infrastructure Shared Services Is to deliver, in incremental releases over multiple years, a fully integrated

shared information technology infrastructure to include hardware, software, 

shared applications, data, telecommunications, security, and an enterprise 

approach to systems and operations management.

 Page 35 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 41 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix I: Description of Business Systems Modernization (BSM) 

 Projects and Program-Level Initiatives

 (continued from previous page) 

 Source: IRS.

Proposed modernization initiative Description

Architecture, integration & management

Architecture & Integration Is to ensure that systems solutions meet IRS business needs and that the development

projects are effectively integrated into the business environment.

Business Integration Is to ensure that IRS’s BSM program is aligned with the business units’ vision and 

delivers the desired business results. It provides support to key activities such as 

transition management, business rules enterprise management, and requirements

development and management operations. 

Business Rules Is to support business process analysis and redesign, business rules harvesting and

management, and business requirements definition. 

Management Processes Is to provide sustaining support for program-level management processes, including 

quality assurance, risk management, program control and process management, and 

ELC maintenance and enhancements.

Federally Funded Research and 

Development Center—MITRE 

Is to provide program management and systems engineering support. 

Program Management Is to ensure that projects achieve their objectives; provide the management information 

and IT infrastructure that supports risk management, project cost and schedule 

estimating, and financial management; and provide procurement management for the 

CSC contract and associated task orders.

 Page 36 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 42 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix II: Additional Detail on IRS’s Fiscal Year 2007 BSM

Expenditure Plan (in thousands of dollars)

Proposed modernization initiative ReleaseaMilestoneb Milestone

date

Amount

requested

Tax administration projects 

Filing and Payment Compliance (F&PC) R1.2 5 Jan. 08 $3,500

F&PC Risk Adjustment 0

 Subtotal – F&PC project 3,500

Modernized e-File (MeF) R5 4a-5 Mar. 08 13,000

MeF Risk Adjustment 7,000

Subtotal – MeF project 20,000

Customer Account Data Engine (CADE) R3.1 4 Aug. 07 19,000

CADE R3.2 4 Dec. 07 18,000

CADE R4 2,3 Feb. 09 8,800

CADE R5 2,3 Feb. 10 2,000

CADE

Operations and

Maintenance N/A Dec. 07 7,000

CADE

Project Mgmt. and 

Transition Mgmt. N/A Sep. 09 2,000

CADE Risk Adjustment 1,700

Subtotal – CADE project 58,500

Subtotal – tax administration projects 82,000

Core infrastructure projects 

Development, Integration & Testing Environments (DITE) FY 07cSep. 07 16,000

Infrastructure Shared Services (ISS) FY 07c Sep. 07 27,000

DITE/ISS Risk Adjustment 500

Subtotal – core infrastructure projects 43,500

 Page 37 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 43 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix II: Additional Detail on IRS’s Fiscal Year 2007 BSM

Expenditure Plan (in thousands of dollars)

(continued from previous page)

Proposed modernization initiative Releasea Milestoneb Milestone

date

Amount

requested

Architecture, integration & management

Architecture & Integration FY 07 c Sep. 07 $15,220

Business Integration FY 07 c Sep. 07 5,250

Business Rules FY 07 c Sep. 07 3,500

Management Processes FY 07 c Sep. 07 3,920

Federally Funded Research and Development Center—MITRE FY 07 c Sep. 07 7,600

Program Management FY 07 c Sep. 07 3,270

Architecture, Integration & Management Risk Adjustment 740

Subtotal – architecture, integration & management 39,500

Management reserve 2,310

Total fiscal year 2007 BSM program $167,310

Source: IRS. 

a

Releases are software versions that provide a subset of the total planned project functionality.

b

Milestones correspond to phases within IRS’s ELC (0 – Vision & Strategy / Enterprise Architecture, 1 – Project Initiation, 2 – Domain Architecture,

3 – Preliminary Design, 4a – Detailed Design, 4b – System Development, 5 – System Deployment).

c

Core infrastructure projects and management initiatives are funded on a fiscal year (FY) basis rather than by milestone.

 Page 38 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 44 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix III: IRS Reported Project Cost/Schedule Changes 

(in thousands of dollars) 

Project segment

Original commitment 

date and funding

Current commitment

date and funding Change

(%) IRS explanation of change

Filing and 

Payment

Compliance

Release 1.1 

Milestone 3-5 

1/31/07

$8,100

1/31/07

$8,584 +$484

(+6%)

A legal protest of the private collection

agency procurement and a related 

suspension of work order delayed full 

production implementation of F&PC 

Release 1.1. During the extended 

partial production period, IRS identified 

potential problems that resulted in 

several change requests. Management 

Reserve funding was allocated to 

cover the costs of the change requests 

as well as other project activities during 

the extended partial production phase.

Filing and 

Payment

Compliance

Release 1.2 

Milestone 3 

2/28/06

16,550

2/28/06

9,014 -7,536

(-46%)

IRS combined Milestones 2 and 3 into 

a firm fixed-price contract, which 

resulted in savings of $1.507 million. 

Due to competing priorities, IRS also 

removed the previously planned 

Release 2 activities from this effort, 

which freed up an additional $6.029 

million. IRS realigned the resulting

$7.536 million to fully fund F&PC 

Release 1.2, Milestone 4a activities. 

Filing and 

Payment

Compliance

Release 1.2 

Milestone 4a 

6/30/06

10,536

7/10/06

10,536

+0.3 months

(+7%)

F&PC Release 1.2 exited MS4a on 

6/30/06, but the official governance 

approval decision did not occur until 

7/10/06.

 Page 39 of 40 
Appendix I

Briefing Slides from the November 14, 2006, 

Briefing to the Senate and House 

Appropriations Subcommittee Staffs

Page 45 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix III: IRS Reported Project Cost/Schedule Changes 

(in thousands of dollars) 

Project segment

Original commitment 

date and funding

Current commitment

date and funding Change

(%) IRS explanation of change

Modernized e-File 

Release 3.2 

Milestone 4/5 

3/31/06

$23,773

3/22/06

$32,323

-0.3 months

(-2%)

+$8,550

(+36%)

The milestone exit occurred earlier 

than planned, based on the availability 

of the voting members. The cost 

increase was due to unplanned 

functionality related to security and 

large file/mandate requirements, stress 

test requirements, the large number of 

change requests received late in 

development, and higher than 

expected defect reports in production.

Customer Account 

Data Engine 

Release 1.3.2 

12/31/05

20,767a

1/17/06

20,833a

+0.5 months

(+3%)

+66

(+0.3%)

Production deployment was later than 

planned, due to testing delays. During 

the CADE funding realignment effort 

review period, the project continued to 

execute against its original plan, and 

some requisitions were not captured 

correctly in the new plan structure.

Customer Account 

Data Engine 

Release 2.1 

Milestone 4 

8/10/06

27,049a

8/25/06

31,239a

+0.5 months

(+7%)

+4,190

(+15%)

The milestone exit was delayed due to 

delays in completing System 

Application Testing. 

The cost overrun was driven by 

restart/rework of the business process 

engineering effort and the associated 

Design Specification Report. Source: IRS. 

a

During FY 2006, IRS realigned a significant portion of the costs previously identified with the CADE Requirements Management Engineering and

Project Management/Transition Management initiatives to the specific project release/milestone those funds directly supported. The CADE 

project funding amounts shown in this table include the realigned costs.

 Page 40 of 40 
Page 46 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix II

Comments from the Internal Revenue Service ApendxiI
Appendix II

Comments from the Internal Revenue Service

Page 47 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan
Appendix II

Comments from the Internal Revenue Service

Page 48 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan
Page 49 GAO-07-247 IRS’s Fiscal Year 2007 Expenditure Plan

Appendix III

GAO Contact and Staff Acknowledgments ApendxiI

GAO Contact David A. Powner, (202) 512-9286

Staff 

Acknowledgments

In addition to the contact person named above, Timothy D. Hopkins, Paul 

B. Middleton, and Sabine R. Paul made key contributions to this report. 

(310835)
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