The Sustaining Infrastructure Program manages the replacement of aged information technology hardware infrastructure that provides the foundation for technology services and supports the IRS\u2019s most critical business needs.\u00a0 The management, maintenance, and ongoing enhancement of the IRS\u2019s information technology are central to the reliability of its operations and to the successful accomplishment of its mission to \u201cprovide America\u2019s taxpayers top-quality service.\u201d The overall objective of this review was to determine the efficiency and effectiveness of key\u00a0ongoing or planned activities aimed at addressing the IRS operational challenge of replacing its aged hardware infrastructure.<\/p>\n
While the Sustaining Infrastructure Program spends on average nearly 99.7 percent of its allocated budget each year, the IRS has not yet achieved its stated objective of reducing its aged information technology hardware to an acceptable level of 20 to 25 percent.\u00a0 In fact, this percentage has steadily increased from 40\u00a0percent at the start of Fiscal Year\u00a02013 to 64\u00a0percent at the start of Fiscal Year\u00a02017.\u00a0 The IRS estimates that the current replacement cost for its aged information technology hardware is approximately $430\u00a0million.<\/p>\n
Aged information technology hardware still in use introduces unnecessary risks.\u00a0 TIGTA analyzed 107 incident tickets most likely to involve aged hardware failures in Fiscal Year\u00a02016 and found that the aggregate length of time to resolve the issues was approximately 4,541 hours.\u00a0 These aged hardware failures may have also had a negative effect on IRS employee productivity, security of taxpayer information, and customer service.<\/p>\n
Each year, the IRS provides varying amounts of funds to the Sustaining Infrastructure Program from a number of different internal sources, including the IRS\u2019s base year operations support appropriation, user fees, and carryover money from previous fiscal years not used by other IRS business units.\u00a0 The IRS has a process in place to monitor each financial plan and identify potential surplus funds.\u00a0 However, additional coordination to identify the availability of surplus funds earlier in the process and development of plans to expeditiously spend these funds on the aged hardware inventory are needed.\u00a0 Such coordination may have resulted in a combined total of up to $67 million in additional unspent funds being available for the Sustaining Infrastructure Program.<\/p>\n
TIGTA recommended that the Chief Information Officer conduct additional coordination with the Chief Financial Officer and other business unit executives to identify the availability of additional transfers, reprogramming, and possible carryover funds earlier in the process to maximize their use and develop plans to expeditiously spend any potential surplus funds that might become available to aid in reducing its aged information technology hardware infrastructure.<\/p>\n
In response to the report, the IRS agreed with two recommendations and disagreed with one.\u00a0 In its Fiscal Year 2018 budget submission, it requested the realignment of funds and additional multiyear authority.\u00a0 This should be of significant benefit if funded as requested.\u00a0 However, given the substantial portion of its hardware infrastructure that is beyond its useful life, additional actions will likely be needed.<\/p>\n