BUSINESS SYSTEMS MODERNIZATION: IRS Needs to Better Balance Management Capacity with Systems Acquisition Workload

Pursuant to the Department of the Treasurys fiscal year 2002 appropriations act,the Internal Revenue Service IRS,in November 2001, submitted to the congressional appropriations committees its fifth expenditure plan,requesting 391 million from its Business Systems Modernization BSMfund.1 As required by the act,we reviewed the plan. Our objectives were to 1determine whether the plan satisfied the conditions specified in the act,2 2determine IRS s progress in implementing modernization management controls and capabilities,and 3provide any other observations about the plan and IRS s BSM program.