The LaserTech contract provides that the agency may review a preproduction sample of up to 200 tax statements from the final product. The Office of Programs' review consists of comparing tax statements to RRB records for consistency and verifying that appropriate mailing information is correctly completed. The Office of Programs' review also ensures that the number of statements released match the RRB's record count. The OIG's review of the results of the Office of Programs quality control review for the preproduction sample did not disclose any problems. The Office of Programs has not formally documented the procedures for quality control testing of LaserTech's preproduction sample.
Management relies on the knowledge of the individuals who perform the function.
As a result, all tax statements could potentially be released untimely or released without the appropriate mailing information. We recommend that the Office of Programs document the procedures for quality assurance testing of LaserTech's preproduction tax statements. Management's Response The Director of Programs has agreed with this recommendation and will document the procedures by June 1, 1998. The RRB applies federal income tax withholding to railroad retirement annuity payments based on the citizenship and residency, marital status, and tax withholding allowances. We compared the 1996 income taxes withheld to the amount of taxes deposited at Treasury.