TIGTA Details 'Excessive' Spending on IRS Conferences
2013-10-037
- Institutional AuthorsTreasury Inspector General for Tax Administration
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2013-13626
- Tax Analysts Electronic Citation2013 TNT 108-34
May 31, 2013
This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determined to be restricted from public release has been redacted from this document.
HIGHLIGHTS
Final Report issued on May 31, 2013
IMPACT ON TAXPAYERS
Excessive spending by Federal agencies on management conferences has been highlighted by recent Inspectors General reports and the subject of congressional hearings. Effective cost management is especially important given the current economic environment and focus on efficient spending. TIGTA identified several ways the IRS could enhance controls over conference spending.
WHY TIGTA DID THE AUDIT
This audit was initiated to identify the IRS's spending on conferences during Fiscal Years 2010 through 2012. Our primary focus was on the August 2010 Small Business/ Self-Employed (SB/SE) Division's All Managers Conference in Anaheim, California. This conference was selected because TIGTA received an allegation of excessive spending and it was the most expensive conference during this period.
WHAT TIGTA FOUND
The SB/SE Division conducted a conference for an estimated 2,609 SB/SE Division executives and managers at a reported cost of $4.1 million at the Marriott, Hilton, and Sheraton hotels located in Anaheim, California. Procedures at the time of the conference did not require IRS management to track and report actual conference costs. As a result, TIGTA could not validate the conference cost reported by the IRS.
TIGTA determined that the IRS did not use available internal personnel to assist in searching for the most cost-effective location as required. Instead, SB/SE Division management approached two non-governmental event planners to identify a suitable off-site location for the conference. These two planners were not under contract with the IRS; hence they had no incentive to negotiate a favorable room rate for the IRS. Instead, the three hotels paid the event planners an estimated $133,000 commission based on the cost of rooms paid for by the IRS.
The IRS may have been able to negotiate a lower lodging rate to reduce conference expenses if it had not used non-governmental event planners and eliminated some of the negotiated concessions provided by the hotels (e.g., daily continental breakfast, a welcome reception with two drink coupons for all attendees, a significant number of suite upgrades). TIGTA also identified other questionable expenses related to the conference including planning trips, outside speakers, video productions, an information corridor, and promotional items and gifts for IRS employees.
WHAT TIGTA RECOMMENDED
TIGTA recommended that the IRS verify that costs are being tracked for recent conferences; track conference attendance; ensure that applicable IRS personnel are used to plan future conferences; develop procedures outlining the appropriate use of non-governmental event planners for IRS conferences; establish procedures related to planning trips, information corridors, videos, and other technology for future conferences; evaluate whether hotel upgrades should be used for future conferences; and ensure that taxable travel is identified and Forms W-2, Wage and Tax Statement, are issued to applicable employees.
In their response to the report, IRS management agreed with all of TIGTA's recommendations. The IRS plans to issue additional guidance related to conference spending and attendance, tracking Continuing Professional Education credits, the use of event planners, soliciting hotel room upgrades, video productions, planning trips, and the conference approval process. The IRS also stated that it plans to issue Forms W-2 to all applicable employees.
* * * * *
May 31, 2013
MEMORANDUM FOR
CHIEF FINANCIAL OFFICER
FROM:
Michael E. McKenney
Acting Deputy Inspector General for Audit
SUBJECT:
Final Audit Report -- Review of the August 2010
Small Business/Self-Employed Division's Conference in Anaheim,
California (Audit # 201310024)
This report presents the results of our review to identify the Internal Revenue Service's (IRS) spending on conferences during Fiscal Years 2010 through 2012 and review selected conferences to determine whether the conferences were properly approved and the expenditures were appropriate. Our review focused on the Small Business and Self-Employed Division's All Managers Continuing Professional Education Conference in Anaheim, California, from August 24 through 26, 2010, and addresses the Major Management Challenge of Achieving Program Efficiencies and Cost Savings.
This audit focused on the Anaheim conference because it was the most expensive IRS conference held during the three-year period (Fiscal Years 2010 through 2012) and because the Treasury Inspector General for Tax Administration (TIGTA) received an allegation of excessive spending related to this conference.
In its response, the IRS indicated that the use of event planners, the receipt of room upgrades, and the welcome reception and breakfast provided by the hotels did not entail the use of any additional Government resources. TIGTA disagrees with this statement. As noted in this report, TIGTA believes that the costs for the conference could have been reduced if the IRS had not requested the numerous concessions from the Anaheim hotels and had instead negotiated for a lower room rate. The requests for proposal sent by the event planners to the hotels on behalf of the IRS specifically requested numerous upgraded rooms and other concessions but specified that per diem, the most that the IRS could pay for each room, would be paid. Further, Department of the Treasury guidance implemented in November 2012 places limitations on the use of event planners because their use can increase costs. As noted in our report, event planners received an estimated $133,000 from the hotels, which was based on the cost of rooms paid for by the IRS.
Management's complete response to the draft report is included as Appendix XI.
Copies of this report are also being sent to the IRS managers affected by the report recommendations. If you have any questions, please contact me or Gregory D. Kutz, Assistant Inspector General for Audit (Management Services and Exempt Organizations).
Table of Contents
Background
Results of Review
The Anaheim Conference Was Approved by Both Internal Revenue
Service Deputy Commissioners
Conference Costs Were Primarily Paid Through Unused Funding
Originally Intended for Hiring Enforcement Employees
Conference Costs Were Not Adequately Tracked and Monitored
Recommendations 1 and 2:
The Process Used to Select Anaheim As the Conference Site Did
Not Follow Established Guidelines
Recommendation 3:
Recommendation 4:
Planning Trips Were Made for the Conference
Recommendation 5:
Fifteen Outside Speakers Were Contracted for the Conference
Star Trek Parody and "SB/SE Shuffle" Videos Were Produced for
the Conference
Recommendation 6:
A Substantial Number of Internal Revenue Service Employees
Received Hotel Upgrades
Recommendation 7:
Local Employees Were Granted Authorization to Stay at the
Conference Hotels
Recommendation 8:
Several Meals and a Welcome Reception Were Provided During the
Conference
Other Expenses Related to the Conference
Recommendation 9:
Appendices
Appendix I -- Detailed Objective, Scope, and Methodology
Appendix II -- Major Contributors to This Report
Appendix III -- Report Distribution List
Appendix IV -- Internal Revenue Service Conferences Held During Fiscal
Years 2010 Through 2012
Appendix V -- Legend for Abbreviations Listed in Appendix IV
Appendix VI -- Internal Revenue Service Conferences Held During Fiscal
Years 2010 Through 2012 Ranked by Highest Average
Cost Per Event
Appendix VII -- Summary of Costs for the Anaheim Conference
Appendix VIII -- Guest Speakers Procured for the Anaheim Conference
Appendix IX -- Anaheim Conference Agenda
Appendix X -- Anaheim Conference Workshops on August 25, 2010
Appendix XI -- Management's Response to the Draft Report
Abbreviations
CDS Centralized Delivery Services
CPE Continuing Professional Education
FY Fiscal Year
IRM Internal Revenue Manual
IRS Internal Revenue Service
SB/SE Small Business/Self-Employed
TAS Taxpayer Advocate Service
In April 2012, the Treasury Inspector General for Tax Administration received an allegation about an August 2010 Internal Revenue Service (IRS) conference held in Anaheim, California, (hereafter referred to as the Anaheim conference or the conference) that may have involved excessive spending. The Small Business/Self-Employed (SB/SE) Division held the conference, entitled "Leading into the Future," for its entire management staff. According to information provided by the IRS, this conference was provided to 2,609 employees at an estimated cost of approximately $4.1 million.
We requested a complete list of conferences1 held by the IRS during Fiscal Years (FY) 2010 through 2012. Based on information provided to us, the IRS held 225 conferences during this period for a total estimated cost of approximately $49 million. See Appendices IV and VI for more information on these conferences. Figure 1 shows the top three conferences held at a single location, based on estimated cost per the IRS.
Figure 1: Top Three Conferences Based on Estimated Cost
Held at a Single Location During FYs 2010 Through 2012
______________________________________________________________________________
Operating Estimated
Division Name/Purpose of Event Date Location Participants Cost
______________________________________________________________________________
SB/SE SB/SE Division All August 2010 Anaheim, 2,609 $4,133,183
Managers Continuing California
Professional
Education (CPE)
Taxpayer TAS Technical August 2010 Philadelphia, 2,113 $2,933,042
Advocate Training Symposium Pennsylvania
Service
(TAS)
SB/SE SB/SE Division March 2010 San Diego, 721 $1,198,397
Collection California
Leadership
CPE
______________________________________________________________________________
Source: Chief Financial Officer, November 2012.2
As a result of the allegation related to the August 2010 Anaheim conference and the fact that it was the most expensive conference reported by the IRS during FYs 2010 through 2012, we focused our audit work on assessing the IRS's spending related to this conference.
In the current economic environment, Congress and the President have focused on ways to reduce unnecessary, inefficient, and wasteful spending. In June 2011, the President launched a Government-wide "Campaign to Cut Waste" to target ineffective and wasteful spending. On November 9, 2011, the President signed Executive Order 13589, Promoting Efficient Spending, reinforcing the Administration's commitment to cutting waste in Federal Government spending and identifying opportunities to promote efficient and effective spending. As part of this Executive Order, agencies were directed to make all appropriate efforts to conduct business and host or sponsor conferences in space controlled by the Federal Government, wherever practicable and cost effective. Excessive spending by Federal agencies on management conferences has been highlighted by recent Inspectors General reports3 and has been the subject of congressional hearings.
Beginning in February 2011, the IRS issued a number of policy guidance documents to minimize spending on travel and conferences. This guidance related to eliminating all face-to-face managers' meetings unless approved by the Deputy Commissioners as well as limiting training to only mission-critical technical training delivered remotely whenever possible (February 2011); discontinuing the purchase of promotional items unless approved by the Deputy Commissioners (August 2011); further reducing all travel and training by 10 percent (November 2011); and establishing new procedures requiring Deputy Commissioner approval of conference-related activities (December 2011). On March 2, 2012, the IRS Chief Financial Officer issued consolidated guidance for events hosted by the IRS including, but not limited to, conferences, training, and meetings. The guidance includes pertinent information on approvals, event planning, refreshments, site selection, procurement, promotional items, and recordkeeping requirements.
In May 2012, the Office of Management and Budget4 issued guidelines which stipulate that agencies may not incur net expenses greater than $500,000 for a single conference and agencies must publicly report (on their official website) all conference expenses in excess of $100,000. Department of the Treasury guidance implemented in November 2012 further requires that any conference hosted or sponsored by Department of the Treasury bureaus costing $250,000 or more be approved by the Treasury Secretary, and that those requiring the use of event planners (for assistance in site selection) be approved in advance by the Department of the Treasury's Office of the Assistant Secretary of Management and Chief Financial Officer.
This review was performed in coordination with the Chief Financial Office of Internal Control and SB/SE Division's Strategy and Finance office in Washington, D.C., during the period October 2012 through March 2013. We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objective. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objective. We did not evaluate the appropriateness or relevance of the training provided at the Anaheim conference. It was beyond the scope of this review to assess the merits and effectiveness of the conference agenda. Detailed information on our audit objective, scope, and methodology is presented in Appendix I. Major contributors to the report are listed in Appendix II.
Results of Review
The Anaheim Conference Was Approved by Both Internal Revenue Service Deputy Commissioners
SB/SE Division management requested and received approval for the Anaheim conference as required based on IRS procedures in place at that time. Specifically, we determined that the Deputy Commissioners, Operations Support and Services and Enforcement, both approved the request for the Anaheim conference on April 12, 2010. At the time of approval, the estimated cost was approximately $4.3 million. The request approved by the Deputy Commissioners was for a "Small Business/Self-Employed All Managers CPE;" however, SB/SE Division management informed us that no CPE credits were provided to any attendees for the specific conference sessions. IRS management stated that all attendees were credited with 24 hours of leadership training that was recorded in the IRS's training system. However, SB/SE Division management also stated that attendees were not required to document their attendance at any conference session.
Procedures at that time required Deputy Commissioner approval for any conference exceeding an estimated cost of $100,000. In December 2011, the IRS issued guidance for events hosted by the IRS including, but not limited to, conferences, training, and meetings. The guidance includes pertinent information on approvals, event planning, refreshments, site selection, procurement, promotional items, and recordkeeping requirements. These procedures now require Deputy Commissioner approval for any event that meets or exceeds a $20,000 threshold; any event involving the purchase of light refreshments, food, or mementos; or any event held at non-Government facilities. In addition, in May 2012, the Office of Management and Budget issued new guidelines which stipulate that agencies may not incur net expenses greater than $500,000 for a single conference and that agencies must publicly report (on their official website) all conference expenses in excess of $100,000. Department of the Treasury guidance implemented in November 2012 now requires any conference hosted or sponsored by Department of the Treasury bureaus costing $250,000 or more be approved by the Treasury Secretary.
Conference Costs Were Primarily Paid Through Unused Funding Originally Intended for Hiring Enforcement Employees
According to SB/SE Division management, the SB/SE Division was allocated $132.7 million in the IRS's FY 2010 budget to hire 1,315 full-time employees. SB/SE Division management stated that the resources were provided for several initiatives, such as improving the reporting compliance of taxpayers, addressing nonfiling/underpayment and collection coverage, reducing the Tax Gap5 attributable to globalization, and expanding document matching for small business taxpayers. IRS management stated the $132.7 million enforcement hiring funds were provided for both salary and training of any new hires and indicated that approximately $18 million of this funding was available for training purposes.
According to SB/SE Division management, 1,516 hires were made during FY 2010. The majority of these were front-line positions such as revenue officers, revenue agents, and tax compliance officers. However, because the new hires were not on board for the full year, IRS management stated that there were unused funds obtained for the hiring initiative that would have lapsed at the end of FY 2010.
SB/SE Division management transferred $3.2 million from the hiring initiative to help fund the conference. They also indicated that they used training funds to cover the additional conference expenses. SB/SE Division management indicated that IRS business units have the authority to reprogram funds to meet their program needs. We did not identify any restrictions preventing the IRS from using these available funds to pay for the conference.
Conference Costs Were Not Adequately Tracked and Monitored
When initially requesting the approval of the Deputy Commissioners, SB/SE Division management estimated the Anaheim conference's total cost as $4,297,285. As shown in Appendix VII, the IRS indicated that the final cost for the conference was $4,133,183.
While IRS management provided documentation showing the total final costs at $4.1 million, we could not obtain reasonable assurance that this amount represents a full and accurate accounting of the conference costs. The IRS was unable to provide documentation to support all costs associated with the conference. Although IRS management established an internal tracking code for employees to charge their conference travel, we determined that this code was not always used as required. For example, we identified 188 employees who attended the conference but did not use the code on their travel voucher (representing approximately $245,000). As a result, we cannot validate that the "final" conference cost of $4.1 million reported by the IRS and detailed in Appendix VII is accurate.
In addition, we requested supporting documentation related to the $50,187 expended for "videos." However, IRS management stated that this was an estimated cost and could not provide detail on how this cost was estimated. In addition, IRS management could not provide any supporting documentation detailing how this money was spent.
Further, IRS management originally estimated that 2,609 employees were expected to attend the conference. SB/SE Division management stated that the cost for all employee travel was $3,752,000.6 However, we reviewed travel voucher documentation and identified that 2,547 vouchers were filed by IRS employees claiming approximately $3,845,000 associated with the conference.
At the time the Anaheim conference was planned and conducted, the IRS did not have any guidelines requiring management to track and report the actual costs incurred for conferences. In March 2012, the IRS Chief Financial Officer issued a memorandum establishing additional controls for event-related spending. This guidance now requires each office conducting a conference to establish a methodology to identify, track, and review various conference events, including costs associated with planning and attending the conference. In addition, each office is required to maintain documentation related to conference planning and attendance to allow for subsequent audit review and management inquiry.
We did not assess whether these new requirements have been implemented and are operating effectively to track actual costs related to conferences held after the March 2012 memorandum was issued. However, we believe IRS management should verify that adequate information is now being tracked and maintained by offices to accurately account for actual conference costs.
Recommendations
The Chief Financial Officer should:
Recommendation 1: For conferences held after issuance of the March 2012 procedures, verify that appropriate information is being tracked and maintained by IRS offices to accurately account for actual conference costs and attendance.
Management's Response: The IRS agreed with this recommendation. The Chief Financial Officer will update the December 27, 2012, Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, to include a requirement for the Chief Financial Officer to review, on a rotating basis, documentation maintained by the business units for conference and event-related spending.
Recommendation 2: Implement a policy to determine whether specific sessions at conferences qualify for CPE credits.
Management's Response: The IRS agreed with this recommendation. The IRS Human Capital Office will strengthen the policy and guidance for determining when a course may be eligible for Certified Public Accountant CPE certification credit in Internal Revenue Manual (IRM) 6.410.1.3.3.3, Credit for Continuing Professional Education for Certified Public Accountants.
The Process Used to Select Anaheim As the Conference Site Did Not Follow Established Guidelines
The process followed by IRS management to identify Anaheim as the conference location did not follow established procedures and may not have resulted in the most cost-effective site being identified for the conference. Specifically, IRS management did not use available internal personnel to assist in searching for the most cost-effective location as required. According to the IRS, SB/SE Division management gave six employees awards totaling $6,000 for their work on the Anaheim conference, including two employees who each received $2,000 who were primarily responsible for coordinating the conference planning.
IRS personnel responsible for identifying conference space were not used
Within the IRS, the Centralized Delivery Services (CDS) function was established to assist IRS management in planning training events. The CDS function is responsible for coordinating conference space for IRS events, including locating off-site training space. The CDS function works with the Office of Procurement to identify the most cost-effective off-site facilities when needed. CDS function personnel are responsible for researching at least three alternate off-site facilities and preparing a cost comparison.
However, SB/SE Division management did not use CDS function personnel to select Anaheim as the conference location. Instead, they relied on non-governmental event planners who were not under contract with the IRS and who were selected based on past relationships with the IRS to identify possible off-site locations. SB/SE Division management stated that their business practice was to complete their own research for all conferences, including the preparation of all cost comparisons and required forms.
IRS guidelines require that Government facilities must be used for training activities, meetings, and conferences when available and adequate to meet training objectives. Non-Government facilities should be used only when Government space is not available or Government space does not meet training requirements due to special circumstances. IRS guidelines indicate that non-Government facilities should be avoided except where it can be demonstrated that the anticipated benefits will more than offset any additional direct expenditures and will not give the general public an appearance of unnecessary spending by the IRS.
When off-site facilities are used, CDS function personnel are required to provide documentation that establishes that Government property was considered but was determined not available and explains why any available Government space does not meet the business needs of the conference. Although the CDS function was not used in the site selection process, SB/SE Division management stated that they believed that SB/SE Division personnel prepared this documentation. However, they were unable to locate the documentation.
Letters of Intent are used by the IRS to state the IRS's intent to hold off-site training at hotels and secure the hotels' cooperation in reserving space until funding has been approved. Although CDS or Procurement function personnel are normally required to sign Letters of Intent, a General Schedule-14 SB/SE Division revenue officer in charge of conference planning signed the Letters of Intent with the three hotels.7 The Letters of Intent detailed the potential number of rooms to be blocked by the hotels as well as the services the hotels agreed to provide in exchange for the IRS's business. These services included continental breakfast each day for all attendees, a welcome reception with two drink coupons for all attendees, and room upgrades. In addition, the Letters of Intent stated that the three hotels would pay a 5 percent commission to each of the two event planners based on the number of rooms and lodging rate paid by the IRS.
Non-governmental event planners representing the IRS were not under contract and were paid $133,000 by the conference hotels
Instead of using the required IRS personnel, SB/SE Division management contacted two non-governmental event planners to identify a suitable off-site location for the conference. SB/SE Division management stated that these two event planners were selected based on prior work performed for the IRS. Although operating on behalf of the IRS, the IRS had no contractual agreement with these two individuals. IRS procedures currently require background investigations and tax compliance checks be performed on contractors doing business with the IRS. However, because the IRS had no contractual agreement with these event planners, the IRS did not perform background or tax compliance checks on these two individuals.
Despite having no contractual agreement with the IRS, these event planners were responsible for issuing Requests for Proposals to hotels and receiving the hotel responses (one event planner was responsible for the eastern part of the United States and the other for the western part of the United States). SB/SE Division management advised us that the Requests for Proposals were analyzed by the event planners and SB/SE Division personnel.
Based on review of the responses received from the Requests for Proposals, IRS management informed us that three possible locations for the conference were identified: Anaheim, California; San Francisco, California; and Dallas, Texas. However, no documentation was available that details how these three locations were ultimately identified from the responses received. Ultimately, Anaheim was selected for the conference.
SB/SE Division management did not enter into a signed contract with the two event planners nor did they directly pay them for their services. Instead, the event planners were each paid a 5 percent commission directly by the hotels based on the number of rooms used by the IRS for the conference. Based on information provided by SB/SE Division management, we estimate the event planners were paid approximately $133,000 by the hotels (or approximately $66,500 each).
The use of the planners in this process increased the possibility that the site selection did not result in the lowest cost to the Government. For example, the event planners had no incentive to negotiate a lower Government room rate at any conference location because they were directly compensated based on the room rate. In addition, the IRS received additional services at the conference, such as continental breakfast each day for all attendees, a welcome reception with two drink coupons for all attendees, room upgrades, free Internet, and free meeting space. The IRS was unable to provide us with any documentation detailing any negotiations conducted with the hotels related to the conference expenses. We question whether the room rate could have been negotiated at a lower rate if some of these services were not included and event planners were not used. The hotels' willingness to pay a commission to the planners indicates that additional room discounts may have been available to the IRS. An IRS Procurement Officer advised us that the IRS has previously been able to negotiate lower room rates, below per diem,8 when a large number of rooms were reserved at one time. In addition, a national sales representative for Hilton Hotels and Resorts stated that they would negotiate room rates lower than the Government per diem depending on the number of rooms, location, and time of year.
We did not identify any policy or guidance in place at the time the conference was conducted outlining the appropriate use of non-governmental event planners and how these types of individuals should be selected for use by IRS management. Department of the Treasury guidance9 implemented in November 2012 places limitations on the use of planners because their use can reduce the Department of the Treasury's control over conference expenses and can increase costs. This guidance now requires the Department of the Treasury's Office of the Assistant Secretary of Management and Chief Financial Officer to approve in advance the use of event planners for conference site selection.
Recommendations
The Chief Financial Officer should:
Recommendation 3: Reemphasize existing procedures to ensure that business units contact CDS function personnel to coordinate planning of any future conference or event. Further, additional procedures should be developed that require all documentation supporting the selection of non-Government facilities for future conferences be maintained for management review.
Management's Response: The IRS agreed with this recommendation. The Agency-Wide Shared Services Procurement office will update and reissue Policy and Procedures Memorandum No. 70.24, Acquiring Training, Meeting and Conference Space, to reflect guidance in Treasury Directive 12-70 and reemphasize existing procedures for planning conferences or events and maintaining supporting documentation. The Human Capital Office will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to include procedures that require all documentation supporting the selection of non-Government facilities for future conferences be maintained for management review.
Recommendation 4: Develop and implement procedures outlining the appropriate use of non-governmental event planners when planning IRS conferences. This should include how event planners are selected and compensated.
Management's Response: The IRS agreed with this recommendation. The Chief Financial Officer issued the December 27, 2012, Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, which limits the use of external event planners. The Human Capital Office will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to include guidance on the use, selection, and compensation of event planners for those instances in which event planners must be used.
Planning Trips Were Made for the Conference
IRS employees made the following planning trips before the conference was held:
A November 2009 planning trip by three IRS employees and the two event planners to Anaheim, California, and San Francisco, California, to review potential hotels for the conference. SB/SE Division management stated that these hotels had responded to the event planners' Requests for Proposals as a potential conference site and that the visits were made to inspect the location, space, and audiovisual technology to determine which site best met the meeting requirements. The cost of the IRS employees' travel for this trip was approximately $3,500.
A June 2010 planning trip by eight IRS employees to Anaheim, California, at a cost of approximately $10,300. IRS management stated that this trip was performed to meet with the sales, convention services, audiovisual, reservations, and catering staff from each hotel to discuss various issues, including room commitment, reservations, cancellation fees, number of rooms required for conference attendees with disabilities, shipping and receiving, and storage. In addition, IRS management stated that internal discussions with IRS personnel were held to discuss staffing and support needs.
An August 2010 (the week before the conference was held) planning trip to Anaheim, California, by 16 IRS employees at a cost of approximately $22,000. SB/SE Division management does not consider this a "planning" trip and stated that support personnel traveled to Anaheim the week prior to the conference to handle all setup work.
We did not identify any policy or guidance that outlined the reason(s) when and why planning trips should be performed for conferences, the appropriate number of employees necessary for these types of trips, and whether a senior management official should approve these trips in advance. However, the costs associated with these planning trips may have been excessive based on the number of employees who were involved. Although some local employees were involved in planning for the conference, additional local SB/SE Division employees who attended the conference may have been able to perform more of the planning steps to reduce further the overall costs.
Recommendation
Recommendation 5: The Chief Financial Officer should establish procedures clearly outlining when planning trips should be performed for conferences. These procedures should require documentation of the reason and estimated cost for planning trips, along with the requirement that local IRS employees are used to the extent possible to perform these planning trips. This information should be provided to a designated management official or an executive for approval.
Management's Response: The IRS agreed with this recommendation. The Human Capital Office will update IRM 6.410.1 Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to emphasize the requirement to document the reason for and estimated cost of planning trips and to maintain documentation of executive approval of the planning trip.
Fifteen Outside Speakers Were Contracted for the Conference
For the conference, SB/SE Division management contracted with 15 outside speakers for presentations at a total cost of $135,350.10 For 13 of these speakers, SB/SE Division management used sole-source contracts specifically requesting the speakers used.11 A sole-source contract is used when a determination is made that only one individual or company can perform the requested service. These contracts all related to leadership topics. The same General Schedule-14 revenue officer previously discussed who was in charge of planning the conference prepared and signed the sole-source justification on behalf of SB/SE Division management. SB/SE Division management stated that the process for selecting the 15 outside speakers included a committee of SB/SE Division senior management who made the decision regarding speaker topics and identified potential speakers. According to IRS management, the committee presented the agenda, workshops, and keynote speakers to the SB/SE Division Commissioner, who ultimately approved them.
The conference featured 15 speakers at a cost of $135,350
The IRS paid for 15 outside speakers and offered additional workshops conducted by IRS management. Appendix X shows that 24 workshops ("knowledge portals") were presented on the second day of the conference (10 workshops conducted by IRS speakers and 14 workshops presented by external speakers paid by the IRS). These workshops were conducted multiple times (generally four times by each speaker) during this day. As a result, attendees could choose from between 22 to 23 different workshops at each of the four workshop session times that could be attended. Because 10 of these workshops were conducted by IRS personnel, some attendees may not have viewed any of the workshops conducted by the paid external speakers.
Two keynote speakers were featured
In addition to the 24 workshops presented on the second day of the conference, the IRS paid two additional speakers to present keynote addresses at the conference. One keynote speaker presented the same speech for two sessions on the first day of the conference. The second keynote speaker presented his keynote address for two sessions on the last day of the conference. Based on the conference agenda, all attendees had the opportunity to attend both keynote speeches.
One keynote speaker was contracted to perform two keynote speeches that lasted approximately one hour each, and the speaker was paid $17,000. According to the contract signed by the IRS, this speaker was "uniquely qualified to deliver this presentation because of the combination of his artistic abilities and his presentation skills. In each presentation, he will create a unique painting that reinforces his message of unlearning the rules, breaking the boundaries, and freeing the thought process to find creative solutions to challenges."
The speaker created six paintings at these two keynote sessions (three at each session). These paintings consisted of the following portraits: Albert Einstein (one); Michael Jordan (one); Abraham Lincoln (one); U2 singer Bono (one); and the Statute of Liberty (two).
At each session, one attendee was selected by the speaker and presented with one of the paintings. SB/SE Division management indicated that three paintings were donated to the Combined Federal Campaign12 as auction items (these paintings were sold for $75, $130, and $380). SB/SE Division management stated that the final painting prepared during these presentations was lost. Figure 2 shows an example of a painting prepared during the conference.
Figure 2: One of Six Paintings Created During the Keynote
Presentation
Source: Recorded conference sessions.
The second keynote speaker was paid $27,500 (including travel expenses) for two speeches lasting approximately one hour each. According to the contract signed by the IRS, this speaker was uniquely qualified because the presentation was based on a book published by the speaker, and the speaker "will share how seemingly random combinations of ideas can drive radical innovations. His concept of Intersectional Ideas illustrates how ideas from different fields can be combined to generate new solutions to existing challenges."
According to the contract, this speaker's fee of $27,500 included a $2,500 flat fee for travel, which the contracting officer authorized to accommodate first-class travel. According to the contracting officer, this travel charge was non-negotiable and was necessary in order to obtain the speaker. In addition, SB/SE Division management stated that the travel costs for "this top rated keynote speaker was appropriate." No travel receipts were obtained by the IRS for our review, and the contracting officer did not know whether the speaker traveled first class or not. We reviewed the speaker's fee schedule and determined that the speaker requires the payment of first-class airfare to domestic locations in addition to his speaking fee.
Star Trek Parody and "SB/SE Shuffle" Videos Were Produced for the Conference
As previously stated, the IRS reported that it expended $50,187 on "videos" for the conference, but was unable to provide any details supporting this cost. We determined that SB/SE Division management showed several videos at the conference, including a Star Trek parody and another video entitled "SB/SE Shuffle."
The conference theme was "Leading into the Future," with a Star Trek parody video shown at the beginning of the conference. This video consisted of a scripted presentation featuring SB/SE Division executives portraying Star Trek characters in a tax-themed parody. SB/SE Division management stated that the purpose of the video was to open the conference by highlighting "current issues facing the IRS and SB/SE [Division] in the leadership arena and set the stage for the many topics being covered at the conference." According to SB/SE Division management, the SB/SE Division Commissioner verbally approved the creation of the video.
Although SB/SE Division management did not track a specific cost associated with producing the Star Trek video, we determined the following:
The Star Trek video was approximately 5 minutes and 40 seconds long and featured SB/SE Division executives in Star Trek costumes on a mock set of the Starship Enterprise. Per the SB/SE Division, employees purchased the costumes using personal funds.
The IRS constructed a mock set at its television studio located in New Carrollton, Maryland, at a cost of $2,400. However, SB/SE Division management does not have any documentation supporting this amount.
IRS personnel located at its New Carrollton television studio worked on the video production. The average grade for these IRS employees was a General Schedule-14.
The SB/SE Division estimated that it takes 11 hours of staff work to produce one minute of finished video. Based on the length of the Star Trek video, we estimate it took approximately 62 staff hours to produce the final video. At a minimum hourly rate of $50.00 for a General Schedule-14 employee, this converts to approximately $3,100 in staff time.
No documentation was maintained to track any costs associated with the development of the other production costs, such as the script development, makeup, lighting, and videotaping.
In addition, a video entitled "SB/SE Shuffle" was produced featuring 15 SB/SE Division executives and managers dancing on a stage. This video was 2 minutes and 52 seconds long. This video was shown during the conference and "was designed to engage managers and help facilitate a connection between executives and managers." SB/SE Division management stated that the SB/SE Division Leadership Planning Committee developed the video and the SB/SE Division Commissioner approved the video.
No documentation was maintained to determine any costs associated with the "SB/SE Shuffle" video. Based on the estimated production costs previously discussed, we estimate that approximately $1,591 in staff time was necessary to produce this video. Our estimated costs for these videos exclude the time expended by SB/SE Division executives and managers when filming these videos.
Recommendation
Recommendation 6: The Chief Financial Officer should establish procedures to clearly outline the need for and value provided by any conference videos for future conferences. The purpose and use of videos should be clearly detailed in any request for a conference and include the applicable costs in the approval request.
Management's Response: The IRS agreed with this recommendation. In February 2013, the IRS created a Service-Wide Video Editorial Board to review and approve all video projects planned throughout the IRS with consideration to cost, topic, and tone. The reviews will include training and education videos, webinars, vignettes, etc., for external placement (YouTube, IRS.gov, and related websites) and any other ad hoc taping projects, such as videos for use at IRS meetings and conferences. Part of the Service-Wide Video Editorial Board's efforts will be focused on ensuring that internal and external videos have a sound business purpose and advance tax administration interests, either through taxpayer education or internal training.
A Substantial Number of Internal Revenue Service Employees Received Hotel Upgrades
As part of the Letters of Intent with the hotels, the IRS received a certain number of free rooms per night as well as suite upgrades that were used by IRS personnel. Federal employees traveling for work are paid for their lodging costs plus a fixed amount for meals (per diem). As part of the agreement, the hotels charged the IRS the Federal Government rate of $135 per night for all rooms (including suites) provided.
Specifically, the Letters of Intent indicate that 93 suite upgrades were provided by the Hilton, 33 by the Marriott, and six by the Sheraton each night of the conference. This represents 4.7 percent of the 2,830 rooms that the hotels agreed to reserve in the Letters of Intent.
Although the per diem rate of $135 was charged by the hotels, we determined the rack rates13 for the upgraded rooms provided ranged from $299 per night to $1,500 per night, depending on the room and the hotel. For example, the Commissioner, SB/SE Division, stayed five nights in a Presidential Suite at the Marriott. This room is described as having a private bedroom, living area, conference table, wet bar, and billiard table. We spoke with a Marriott representative who stated that this suite currently retails for $3,500 per night.14
The Deputy Commissioner, SB/SE Division, stayed five nights in a two-bedroom Presidential Suite at the Hilton. The IRS paid the standard per diem rate of $135 per night for the room, which would have normally cost guests $1,499 per night during a four night stay. Figure 3 shows a Presidential Suite at the Hilton hotel.
Figure 3: A Presidential Suite at the Hilton Hotel
Source: Hilton website shown with permission from the Hilton Hotels and Resorts.
Per the Letters of Intent, the IRS negotiated to receive 10 complimentary rooms per night available among the three participating hotels. These rooms were used primarily by the paid speakers and non-IRS technical support staff. In addition, the two event planners were provided complimentary rooms for a total of 19 nights, and two local employees were each provided complimentary rooms for six nights.
Because these free rooms and upgrades were part of the Letters of Intent with the hotels, they are not gifts to employees. However, the solicitation and use of hotel room upgrades increases the perception of wasteful spending and should be carefully considered in the future.
Recommendation
Recommendation 7: The Chief Financial Officer should evaluate whether the solicitation of hotel room suite upgrades for use by IRS employees should be allowed in agreements with hotels hosting IRS conferences in the future. In addition, any agreement with hotels containing hotel suite upgrades should be approved by the applicable business unit executive.
Management's Response: The IRS agreed with this recommendation. The Human Capital Office will update Internal Revenue Manual 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to prohibit the solicitation of room suite upgrades and to require approval by the applicable business unit executive when upgrades are offered at no cost to the IRS. The Agency-Wide Shared Services Procurement office will update and reissue Policy and Procedures Memorandum No. 70.24, Acquiring Training, Meeting and Conference Space, to prohibit the solicitation of room suite upgrades and to require approval by the applicable business unit executive when upgrades are offered at no cost to the IRS.
Local Employees Were Granted Authorization to Stay at the Conference Hotels
IRS travel guidelines allow employees on official travel more than 40 miles from both their official duty station and residence to claim per diem expenses.15 These guidelines outline several circumstances that may justify an exception, such as when an employee is attending training or a conference and the location is at least 30 miles from both their official duty station and residence. Travel guidelines state that any per diem expenses (including lodging) are taxable to the employee if they are incurred within the local commuting area.
After the Anaheim conference was approved in April 2010, the SB/SE Division Commissioner authorized local employees the option of staying overnight at the conference hotels, regardless of their post of duty. This decision was made to reduce the demands on local travelers who would otherwise experience lengthy commutes daily during the conference and to foster employee morale and team spirit.
The IRS provided us with a list of 38 local IRS employees who stayed at the hotels and incurred per diem expenses of $29,364. Additionally, we identified seven other local area employees who stayed at the Anaheim hotels and incurred per diem expenses totaling $4,816 who the IRS did not report on the list provided.
Because per diem expenses are taxable to the employees in the local commuting area, we asked the IRS to identify the employees who received a Form W-2, Wage and Tax Statement, reporting the taxable per diem. IRS management informed us that four of the 38 employees they knew had performed local travel were not issued a Form W-2 as required. In addition, IRS management agreed that two of the seven additional employees we identified incurred taxable travel expenses and were not issued Forms W-2. They disagreed with the other five because they believe the employees' residences and posts of duty were more than 30 miles from the conference location. However, our research indicated that the posts of duty for these employees were within 30 miles of the conference location. As a result, we believe that these employees incurred taxable travel.
Recommendation
Recommendation 8: The Chief Financial Officer should identify all local employees who claimed per diem travel related to the conference and ensure that Forms W-2 are issued to all employees for taxable travel as appropriate.
Management's Response: The IRS agreed with this recommendation. The IRS will identify local employees who did not receive a Form W-2 for taxable travel and will issue them as appropriate.
Several Meals and a Welcome Reception Were Provided During the Conference
As part of its agreement with the Anaheim hotels, the IRS required certain concessions including several food and beverage requests. This included the following items that were contracted to be served during the conference: a welcome reception with cocktails (each attendee was provided two free drink coupons), salad, appetizers, fajitas, pasta, and dessert; a daily continental breakfast consisting of two bread items, whole fruits, juice, tea, and coffee; and beverages and snacks during morning and afternoon breaks.
In addition to their lodging costs, Federal employees traveling for work are paid a fixed amount for meals (per diem). In Calendar Year 2010, the meal and incidental expenses allowance for Anaheim, California, was $71 per day. According to the Federal Travel Regulations, employees are not required to reduce their per diem reimbursement for complimentary meals provided by a hotel or motel.
Other Expenses Related to the Conference
During our review, we identified other questionable expenses related to the conference. These expenses related to the use of an "information corridor" staffed by IRS employees from various IRS business units during the conference, gifts and/or promotional items provided to conference attendees, and a contract for automated response tools used by attendees during the conference.
An exhibitor hall was used at significant additional cost
An information corridor, i.e., exhibitor hall, was established at the conference where "representatives from various offices within the IRS could share information on their services and share hands-on demos with meeting participants." IRS documentation indicated that there were 41 booths at the information corridor staffed by IRS employees from various business units as well as non-IRS employees. Specifically:
42 IRS employees traveled for the information corridor (seven SB/SE Division employees and 35 non-SB/SE Division employees). The IRS reported more than $44,000 in total travel related to the information corridor.
Examples of some booths at the information corridor included: the IRS Employee Recognition Program; Equal Employment Opportunity/Diversity personnel; the IRS Recruitment Office; the Wellness Program; the Federal Managers Association; Worker's Compensation; and USAJobs/CareerConnector.
Per the IRS website,
The exhibit featured engaging activities, such as an outer space galaxy challenge giveaway, Los Angeles Angels baseball ticket giveaway, and a time capsule (to share visions of SB/SE in 2020), as well as booths, displays, and an assortment of information about the work of SB/SE. The Information Galaxy was attended by over 1,800 individuals who visited booths hosted by SB/SE operating units and other IRS business units, executives, and senior managers. In addition to the Information Galaxy, it featured networking opportunities, educational workshops and forward-looking technology.
At the information corridor, 24 tickets to two Los Angeles Angels baseball games (12 tickets per game) were used as contest prizes. SB/SE Division management advised us that these tickets were donated by the Hilton, the Marriott, and the Anaheim Convention and Visitors Bureau. They also stated that it is common industry practice for items to be donated to groups that hold large events in a particular city. IRS management stated that they relied upon advice from IRS Chief Counsel personnel for the appropriate treatment of these tickets.
The use of an information corridor and the associated costs were not clearly delineated in the request for the conference approved by the Deputy Commissioners.
Promotional items/gifts were provided to IRS employees
Numerous gifts/trinkets were provided to attendees at an estimated cost of more than $64,000. During our review, we noted that IRS employees attending the conference were provided with the following items per IRS documentation:
2,804 "brief bags" with an imprinted logo were provided to all attendees at an estimated cost of $15,669. The logo on each bag included the caption "Leading into the Future," the theme of the conference.
2,800 hard-covered spiral journals with a conference logo imprinted on the front and the hotels' and event planners' logos on the inside cover. The IRS paid $2,449 for 505 journals, with an additional $13,064 paid by the hotels, the event planners, and the Anaheim Convention and Visitors Bureau.
800 lanyards, 75 travel mugs, and 75 picture frames/clocks with the SB/SE Division logo, along with an unknown number of imprinted portfolios, sticky note pads, bookmarks, and retractable badge holders with a reported cost totaling approximately $19,210.
Various promotional items totaling approximately $27,000 were provided at the information corridor booths. These included items such as "engraved pens/badge holders, give-away items from Oriental Trading,16 promotional pens/printing poster/web cams, and imprinted can coolers/post-it notes."
We did not identify any guidance at the time of the conference outlining the purchase of gift items/mementos for conferences sponsored by the IRS. In August 2011, the IRS issued guidance to its senior executive staff discontinuing the purchase of any promotional items with logos or customized slogans, such as pens, mouse pads, mugs, and lanyards. The Deputy Commissioner for Operations Support or the Deputy Commissioner for Services and Enforcement must approve any exceptions to this policy. In October 2012, the IRS incorporated this guidance into its internal procedures manual.
Automated response tools were rented
The IRS also rented approximately 2,800 automated (audience) response tools at a cost of $24,828. SB/SE Division management advised us that their purpose was to provide an interactive training tool that would allow the speaker to gather results in real-time and share with participants. While the automated response tools may have provided some benefit to gauge audience participation, it was not used for CPE.
We reviewed the sessions that were recorded on 32 Digital Video Discs by the hotels during the conference and determined that the automated response tools were used for a total of 127 questions. However, a number of the questions were trivial in nature and were not intended to enhance attendees' knowledge of SB/SE Division operations. For example, the tools were used for 53 questions on the first day of the conference, mainly for an interactive "Jeopardy"-style game to quiz attendees on items covered in prior sessions or available in the information corridor. It appears the automated response tools were not used during the second day of the conference. On the last day, it was used for 74 questions during two sessions.
Recommendation
Recommendation 9: The Chief Financial Officer should establish procedures to clearly outline the need for and value provided by any information corridors/exhibitor halls and other technology for future conferences. The purpose and use of any exhibitor hall or technology should be clearly detailed in any request for a conference and include the applicable costs, including giveaway items, in the approval request.
Management's Response: The IRS agreed with this recommendation. The Chief Financial Officer issued the December 27, 2012, Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, which outlines the requirements to include the full cost of events when submitting events for approval. The Human Capital Office will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to reflect guidance on the analysis of the use of exhibitor halls and specialized technology.
1 For this audit, we defined conferences as an IRS-sponsored meeting, retreat, seminar, symposium, training, or other event that involved travel for 50 or more attendees. In addition, a conference is defined in the Federal Travel Regulations as, ". . . [a] meeting, retreat, seminar, symposium or event that involves attendee travel. The term 'conference' also applies to training activities that are considered to be conferences under 5 CFR 410.404." See 41 CFR 300-3.1.
2 The Treasury Inspector General for Tax Administration has only reviewed the SB/SE Division Leadership Conference described in this report and has not performed any detailed analysis of the other conferences held during FYs 2010 through 2012. Although we obtained a list of 225 conferences, we focused on the Anaheim conference based on an allegation received.
3 U.S. General Services Administration Office of Inspector General, Management Deficiency Report: General Services Administration Public Buildings Service 2010 Western Regions Conference (Apr. 2, 2012), and Veterans Administration Office of Inspector General, Department of Veterans Affairs Administrative Investigation of the FY 2011 Human Resources Conferences in Orlando, Florida (Sept. 30, 2012).
4 Office of Management and Budget, Memorandum M12-12, Promoting Efficient Spending to Support Agency Operations (May 2012).
5 The Tax Gap is the estimated difference between the amount of tax that taxpayers should pay and the amount that is paid voluntarily and on time.
6 This total excludes travel for planning trips conducted prior to the conference.
7 The revenue officer mentioned in this section is the same revenue officer mentioned in other sections of the report.
8 The per diem allowance (also referred to as subsistence allowance) is a daily payment instead of reimbursement for actual expenses for lodging, meals, and related incidental expenses.
9 Treasury Directive 12-70, Hosted or Sponsored Conference Planning and Approval, November 28, 2012.
10 See Appendix VIII for a list of the speakers and a description of the services provided.
11 Services for the remaining two speakers (Mark Nishan and Vincent Stovall) were obtained using a Standard Form 182, Request, Authorization, Agreement & Certification of Training. SB/SE Division management stated that these two speakers were identified later in the conference planning, and they did not have ample time to use the sole-source process.
12 The Combined Federal Campaign is a charity campaign created and run by Federal workers that raises funds to benefit authorized charities.
13 "Rack rate" is a hotel industry term for the price a hotel charges for a room before any discount has been taken into account.
14 The Marriott Hotel and Resorts declined our request to show an image of a Presidential Suite at the Anaheim Marriott from their website.
15 The per diem allowance (also referred to as subsistence allowance) is a daily payment instead of reimbursement for actual expenses for lodging, meals, and related incidental expenses.
16 These items were purchased by the Human Capital Office for approximately $730 and were given to attendees at the information corridor as well as during a conference workshop. They consisted of various items, including key chains, plastic coins, miniature stuffed animals, plastic squirting fish, and miniature bendable plastic figures.
END OF FOOTNOTES
* * * * *
Appendix I
Detailed Objective, Scope, and Methodology
The overall objective of this review was to identify the IRS's spending on conferences during FYs 2010 through 2012. One conference was selected to determine whether it was properly approved and the expenditures were appropriate. Although our primary focus was the August 2010 SB/SE Division's All Managers Conference in Anaheim, California, we also surveyed other IRS conferences held during FYs 2010 through 2012. To accomplish our objective, we:
I. Reviewed the applicable Federal and IRS guidelines for spending on conferences.
II. Obtained a complete list of conferences1 held by the IRS for FYs 2010 through 2012.
A. Identified conferences hosted by the IRS that may warrant review based upon specific allegations provided to the Treasury Inspector General for Tax Administration, estimated cost, location, number of attendees, cost per conference and attendee, etc.
B. Requested additional information from the IRS for selected conferences. (We reviewed detailed cost information related only to the Anaheim conference.)
III. For the Anaheim conference, reviewed the process used by the IRS to determine whether the required information and support was included in the request for approval.
IV. Evaluated the costs incurred for the Anaheim conference to determine whether the expenditures were appropriate and reasonable.
A. Obtained documentation to calculate the costs charged on IRS travel vouchers by attendees at the conference.
B. Obtained and reviewed documentation from the IRS detailing expenditures to determine whether they were excessive or inappropriate.
C. Determined whether IRS employees attending the conference received complimentary meals and lodging tax exemptions from the conference hotels.
D. Determined whether local employees who stayed in the conference hotels received a taxable benefit and were authorized to charge the Government for lodging.
E. Estimated the total amount received by outside speakers and event planners based on their services.
F. Reviewed available documentation to determine whether planning trips were made for the conference and the total costs associated with these trips.
G. Determined whether any IRS employees received awards based on work supporting the conference and, if so, the amount and justification.
H. Discussed potential exceptions, such as questionable/excessive costs, with applicable IRS management.
Internal controls methodology
Internal controls relate to management's plans, methods, and procedures used to meet their mission, goals, and objectives. Internal controls include the processes and procedures for planning, organizing, directing, and controlling program operations. They include the systems for measuring, reporting, and monitoring program performance. We determined the following internal controls were relevant to our audit objective: the IRS's approval process for conferences and the IRS's policy for off-site events. We evaluated these controls by interviewing IRS management, reviewing a sample of travel vouchers, and reviewing other applicable documentation for the Anaheim conference.
FOOTNOTE TO APPENDIX I
1 For this audit, we defined conferences as an IRS-sponsored meeting, retreat, seminar, symposium, or event that involved travel for 50 or more attendees.
END OF FOOTNOTE TO APPENDIX I
* * * * *
Appendix II
Major Contributors to This Report
Gregory D. Kutz, Assistant Inspector General for Audit (Management Services and Exempt Organizations)
Jeffrey M. Jones, Director
Jonathan T. Meyer, Director
Alicia P. Mrozowski, Director
Heather M. Hill, Audit Manager
Janice M. Pryor, Audit Manager
Mary F. Herberger, Lead Auditor
LaToya R. Penn, Senior Auditor
Gary D. Pressley, Senior Auditor
Joseph P. Smith, Senior Auditor
Appendix III
Report Distribution List
Acting Commissioner C
Office of the Commissioner -- Attn: Chief of Staff C
Deputy Commissioner for Operations Support OS
Deputy Commissioner for Services and Enforcement SE
Commissioner, Small Business/Self-Employed Division SE:S
Deputy Chief Financial Officer OS:CFO
Director, Strategy and Finance, Small Business/Self-Employed Division
SE:S:SF
Chief Counsel CC
National Taxpayer Advocate TA
Director, Office of Program Evaluation and Risk Analysis RAS:O
Office of Internal Control OS:CFO:CPIC:IC
Director, Office of Legislative Affairs CL:LA
Audit Liaisons:
Chief Financial Officer OS:CFO
Appendix IV
Internal Revenue Service Conferences
Held During Fiscal Years 2010 Through 20121
______________________________________________________________________________
Estimated
FY Name Division Cost Attendees
______________________________________________________________________________
2010 SB/SE All Managers CPE SB/SE $4,133,183 2,609
2010 SB/SE Exam CPE FY 2010 SB/SE $3,180,412 3,892
2010 TAS Technical Training Symposium TAS $2,933,042 2,113
2010 SB/SE Collection Leadership CPE SB/SE $1,198,397 721
2010 LB&I (LMSB) All Managers Meeting LB&I $1,181,871 800
2010 SB/SE Technical Training Counsel $1,158,628 665
2010 SB/SE Collection Administrative
Professional CPE SB/SE $909,792 813
2010 SB CPE: Bank Secrecy Act Program CPE SB/SE $786,939 527
2010 FY 2010 CPE for Exam Secretaries SB/SE $746,994 562
2010 LMSB Technical Training Counsel $638,635 433
2010 Appeals Processing Services CPE Appeals $637,930 382
2010 Excise Revenue Agent CPE 2010 SB/SE $610,717 450
2010 Employment Tax Specialists CPE 2010 SB/SE $589,142 410
2010 GE CPE TE/GE $529,863 368
2010 AWSS All Managers CPE AWSS $498,000 277
2010 Settlement Officers CPE Field Appeals $463,076 308
2010 All Managers Meeting Appeals $400,411 246
2010 LMSB Support Staff CPE LB&I $381,113 300
2010 Abusive Transactions Summit Training SB/SE $358,938 238
2010 CI Supervisory Special Agent Workshops CI $351,413 224
2010 EP Rulings and Agreements Annual CPE TE/GE $318,656 306
2010 Business Master File Revenue Officer
Training Appeals $316,031 134
2010 IT Services Leadership Conference MITS $307,187 320
2010 New Hire Orientation -- Settlement
Officers Session 2 Appeals $301,771 230
2010 New Attorney Orientation Counsel $263,577 190
2010 Taxpayer Advocacy Panel Annual
Meeting TAS $263,275 136
2010 EO Basic New Hire Training TE/GE $260,765 89
2010 TAS Leadership Conference TAS $259,212 127
2010 Specialty Managers CPE SB/SE $248,463 126
2010 Congressional Affairs Program
Conference TAS $243,705 123
2010 IRS Nationwide Tax Forums C&L $242,331 259
2010 Technical Services Tax Examiner CPE SB/SE $225,874 211
2010 IRS Nationwide Tax Forums C&L $223,618 239
2010 IRS Nationwide Tax Forums C&L $222,682 238
2010 GLS Technical Training Counsel $218,877 84
2010 All Managers Meeting -- EUES MITS $212,540 126
2010 IRS Nationwide Tax Forums C&L $208,648 223
2010 IRS Nationwide Tax Forums C&L $206,776 221
2010 SCR/Administrative Officer CPE AWSS $205,000 120
2010 CPE AWSS $201,215 142
2010 CPE AWSS $200,110 138
2010 IRS Nationwide Tax Forums C&L $189,935 203
2010 Research CPE SB/SE $187,651 107
2010 S&F Face to Face CPE SB/SE $184,853 126
2010 Specialty Administrative
Professionals CPE SB/SE $184,835 81
2010 Accounts Management Analyst
Technical Training W&I $182,311 139
2010 BMO All Employees CPE W&I $178,146 180
2010 EOps All Managers Meeting MITS $171,573 185
2010 All Employees CPE AWSS $166,431 150
2010 FY 2010 CPE for Fraud Technical
Advisors SB/SE $163,009 101
2010 All Managers CPE AWSS $160,121 77
2010 TE/GE Technical Training Counsel $158,372 132
2010 ERCS Oracle Discover SB/SE $154,076 74
2010 FM Manager Training Counsel $152,781 90
2010 CI Narcotics Money Laundering
Training Seminar CI $145,306 106
2010 CI Chicago Field Office CPE
Conference CI $140,937 180
2010 2010 IRS Research Conference RAS $140,893 350
2010 CT Technical Training Counsel $140,496 87
2010 Systems Integration and
Coordination Branch All Hands
Meeting -- EOps MITS $134,834 91
2010 California All Managers Meeting SB/SE $134,608 130
2010 CI Warrants and Forfeiture Asset
Forfeiture CPE CI $131,291 130
2010 Strategy and Finance Analyst CPE Appeals $127,501 106
2010 SB/SE Area Hiring Coordinator
Planning Meeting SB/SE $127,500 86
2010 Field Specialist Issue Focus
Meeting LB&I $126,685 86
2010 CI Seattle Field Office CPE CI $125,579 127
2010 W&I Compliance Headquarters
Analysts Conference W&I $121,689 140
2010 Settlement Officers CPE Campus
(East) Appeals $120,763 130
2010 Exam Midwest Area All Managers
Meeting SB/SE $120,415 96
2010 New Hire Orientation (AOs) --
Session I Appeals $119,004 116
2010 EP Examinations 403(b) Training TE/GE $118,874 90
2010 M&F All Employees Meeting LB&I $117,546 87
2010 BSA Conference CI $114,000 76
2010 SPEC National Disability
Institute (NDI) Mayor Conference W&I $113,857 111
2010 Appeals Officers Campus CPE Appeals $113,476 110
2010 Annual Business Meeting NHQ $112,753 340
2010 Basic Trial Advocacy Counsel $112,729 53
2010 Exam Gulf States Area All
Managers Meeting SB/SE $111,854 147
2010 EO Exam All Managers Meeting TE/GE $111,733 73
2010 IRS Training Class -- Phase II CI $110,586 77
2010 Basic Trial Advocacy Counsel $109,557 53
2010 Financial Management Customer
Training Conference CFO $109,165 98
2010 Exam South Atlantic All Managers
Meeting SB/SE $106,896 121
2010 Appeals Regional Meeting Appeals $105,567 85
2010 EPTA CPE TE/GE $104,573 68
2010 IRS-CI/TEOAF Title 31/SAR Review
Task Force CI $102,501 137
2010 Atlanta Accounts Management
Leadership Conference W&I $101,342 172
2010 Corporate New Hire Orientation
Sep 10 TCO SB/SE $100,114 87
2010 North Atlantic Area All Managers
CPE CI $100,000 82
2010 SPEC Leadership Conference W&I $99,947 70
2010 Basic Trial Advocacy Counsel $99,092 53
2010 Exam North Atlantic Area All
Managers Meeting SB/SE $98,877 112
2010 CI National Counterterrorism
Seminar CI $98,000 85
2010 LMSB Managers Meeting Counsel $97,000 77
2010 Exam Western Area All Managers
Meeting SB/SE $96,497 92
2010 Personnel Security CPE HCO $95,831 75
2010 M&P Leadership Conference W&I $95,820 62
2010 BSP Conference AWSS $95,693 84
2010 Commissioner Leadership Conference W&I $94,249 120
2010 Cross-Functional International
Training TE/GE $94,179 58
2010 Training -- EOps MITS $93,665 73
2010 PIPDS All Employees Meeting PGLD $90,804 65
2010 SB/SE Collection Gulf States All
Managers Meeting SB/SE $90,000 95
2010 Corporate New Hire Orientation --
April 10 TCO SB/SE $89,772 76
2010 All Managers CPE HCO $89,540 50
2010 Exam Technical Service All
Managers Meeting SB/SE $88,837 55
2010 All Managers Meeting HCO $88,824 50
2010 Appeals TG Business Meeting Appeals $88,419 70
2010 PIO CPE CI $87,483 67
2010 Exam Central Area All Managers
Meeting SB/SE $87,089 70
2010 Newark Field Office FY10 CPE CI $87,084 107
2010 Oakland Field Office FY10 CPE CI $85,752 132
2010 CPE for IMD Community RAS $85,274 193
2010 Fraud Technical Advisors
Revenue Agent International SB/SE $84,424 153
2010 CLD Administrative CPE SB/SE $83,276 55
2010 EP Examinations Programs
and Review CPE TE/GE $81,842 60
2010 Technical Advisors CPE Appeals $81,350 61
2010 CI Refund Crimes All Managers
Meeting CI $79,675 67
2010 Advanced Trial Advocacy Counsel $77,679 55
2010 Area 10 Business Meeting Appeals $77,175 126
2010 Account Managers FY11 Leadership
Conference W&I $77,072 201
2010 FA Area 4 Leadership Conference W&I $74,588 53
2010 EP MAP Training TE/GE $74,276 56
2010 FBSA Secretary CPE 2010 SB/SE $73,981 54
2010 All Managers Meeting CFO $72,195 54
2010 Account Managers Fresno
Directorate Leadership Conference W&I $71,959 87
2010 Detroit Field Office FY10 CPE CI $67,338 95
2010 EP Conflict Management TE/GE $66,778 57
2010 CCS Filing and Payment Compliance SB/SE $66,000 55
2010 FA Area 3 Leadership Conference W&I $65,962 53
2010 W&I Compliance Leadership
Conference W&I $64,805 60
2010 Reasonable Accommodations AWSS $63,961 50
2010 National Research Project Training TE/GE $63,812 58
2010 FA Area 2 Leadership Conference W&I $63,548 56
2010 EPSS Leadership Conference W&I $62,193 60
2010 SB:SP:EG Estate and Gift Tax
Managers CPE 2010 SB/SE $61,227 55
2010 Andover Compliance Service
Leadership Conference W&I $59,082 75
2010 CPE for IMD Community RAS $56,984 144
2010 Compliance FY10 Leadership
Conference W&I $53,580 140
2010 FA Area 1 Leadership Conference W&I $52,421 52
2010 SB/SE Collection Central Area
All Managers Meeting SB/SE $48,000 63
2010 Accounts Management Leadership
Conference W&I $47,849 86
2010 Accounts Management Leadership CPE W&I $46,230 170
2010 All Employees CPE HCO $41,006 50
2010 FY10 IRS Ogden Accounts
Management Center All Managers CPE
Speed of Trust W&I $36,197 121
2010 SP Joint Leadership Conference W&I $27,568 64
2010 All Managers FY 10 Leadership
Conference W&I $22,319 118
2010 Accounts Management Leadership
Conference W&I $22,160 90
2010 Kansas City Compliance Leadership
Conference W&I $20,496 200
2010 Compliance Leadership Conference W&I $17,730 139
2010 Accounts Management CPE W&I $16,693 90
2010 Atlanta Field Compliance
Services Leadership Conference W&I $16,274 139
2010 Accounts Management Training Day W&I $2,720 200
2011 Estate and Gift Tax Attorney
FY 11 CPE SB/SE $480,638 332
2011 IRS Nationwide Tax Forums C&L $261,721 277
2011 Taxpayer Advocacy Panel Annual
Meeting TAS $260,600 136
2011 TAS Leadership Conference TAS $258,005 113
2011 Congressional Affairs Program
Conference TAS $234,793 121
2011 Fraud Technical Advisors Phase
II (course delivery) SB/SE $211,312 78
2011 IRS Nationwide Tax Forums C&L $205,975 218
2011 Annual Asset Forfeiture CPE CI $204,925 130
2011 Fraud Emerging International
Issues SB/SE $186,730 155
2011 All Managers Meeting -- EUES MITS $180,969 111
2011 All Managers Meeting HCO $179,044 145
2011 IRS Nationwide Tax Forums C&L $178,575 189
2011 IRS Nationwide Tax Forums C&L $167,237 177
2011 New Hire Orientation (AOs) Appeals $161,731 144
2011 IRS Nationwide Tax Forums C&L $159,678 169
2011 IRS Nationwide Tax Forums C&L $155,899 165
2011 BSA Conference CI $153,000 102
2011 CI Senior Leadership Meeting CI $147,831 119
2011 SB/SE Collection AIQ All
Managers Meeting SB/SE $141,381 135
2011 All Managers CPE AWSS $141,109 72
2011 Fuel Compliance Agent (FCA)
Phase III SB/SE $134,106 59
2011 All Managers Meeting AWSS $127,168 96
2011 Senior Managers Meeting HCO $117,283 70
2011 CI Questionable Refund Program
and RPP Meeting CI $109,759 84
2011 All Employees CPE C&L $100,835 72
2011 NATIA Conference CI $99,099 54
2011 Basic Trial Advocacy Counsel $97,561 53
2011 New Hire Orientation
(Settlement Officers) Appeals $97,279 122
2011 CI National Counterterrorism
Seminar CI $91,311 77
2011 Basic Trial Advocacy Counsel $90,057 53
2011 Leadership Conference AWSS $90,036 63
2011 SPEC National Disability
Institute Mayor Conference W&I $86,724 72
2011 CIMIS Equipment Coordinator CPE CI $83,000 58
2011 Domestic Terrorism and Frivolous
Filer Training Conference CI $79,447 75
2011 New Attorney Orientation Counsel $77,063 85
2011 EO International Training TE/GE $76,872 62
2011 Coordinated Issues Cases
Excise Cases SB/SE $76,137 54
2011 Asset Forfeiture Basic Training CI $76,117 66
2011 Issue Practice Group (CAM and DCE) LB&I $71,457 65
2011 SB/SE Collection Midwest Area
All Managers Meeting SB/SE $71,435 80
2011 PIPDS All Employees Meeting PGLD $68,611 72
2011 SPEC National Disability
Institute (NDI) Mayor Conference W&I $62,206 111
2011 EP Voluntary Compliance Workshop TE/GE $60,712 87
2011 CI Asset Forfeiture Training
Conference CI $27,180 78
2011 Charlotte Field Office Asset
Forfeiture Training/Town Hall
Meeting CI $22,804 85
2011 Accounts Management FY11
Leadership Conference Continuous
Improvement Starts With One W&I $21,515 126
2011 Asset Forfeiture Conference --
New Orleans Field Office CI $19,443 61
2011 Cincinnati SP Leadership Conference W&I $570 125
2011 M&P Leadership Conference W&I $372 65
2012 Flow Through Entity SB/SE $1,778,194 317
2012 Flow Through Entity SB/SE $1,044,259 211
2012 EP Examinations Phase III New
Hire Training TE/GE $218,871 61
2012 Congressional Affairs Program
Conference TAS $200,903 107
2012 TAS Leadership Conference TAS $196,000 115
2012 New Hire Orientation for FY13 Appeals $156,600 115
2012 National Tax Forum C&L $146,358 81
2012 National Tax Forum C&L $133,648 89
2012 CI Refund Crimes CPE CI $133,415 96
2012 National Tax Forum C&L $124,445 79
2012 National Tax Forum C&L $116,752 82
2012 National Tax Forum C&L $106,220 78
2012 National Tax Forum C&L $102,933 78
2012 Advanced Training CI $99,586 70
2012 PFTG QA Consistency Forum LB&I $75,000 50
2012 LITC Grantee Conference TAS $72,563 60
2012 Fiduciary Abusive Trust SB/SE $61,684 50
2012 New Attorney Orientation Counsel $53,362 103
2012 Fresno SP Leadership Conference W&I $18,379 190
2012 Austin SP Leadership Conference W&I $8,366 180
2012 Natural Resources and
Construction Industry DFO --
West Town Hall Meeting LB&I $5,000 175
2012 Ogden SP Leadership Conference W&I $3,600 140
2012 Kansas City SP Leadership
Conference W&I $669 160
2012 Compliance Leadership Conference W&I $0 110
Fiscal Year 2010 Estimated Cost $37,567,680
Fiscal Year 2011 Estimated Cost $ 6,207,312
Fiscal Year 2012 Estimated Cost $ 4,856,807
Grand Total Estimated Cost for 225 Conferences $48,631,799
______________________________________________________________________________
[table continued]
______________________________________________________________________________
FY Name Venue Location
______________________________________________________________________________
2010 SB/SE All Managers CPE Marriott/Hilton/Sheraton Anaheim, CA
2010 SB/SE Exam CPE FY 2010 Various IRS locations & Approx. 60
private space various
cities
2010 TAS Technical Training Symposium Philadelphia Marriott Phila-
delphia, PA
2010 SB/SE Collection Leadership CPE Manchester Grand Hyatt San Diego,
CA
2010 LB&I (LMSB) All Managers Meeting Marriott Marquis Hotel Atlanta, GA
2010 SB/SE Technical Training Chicago Hyatt Regency Chicago, IL
2010 SB/SE Collection Administrative Atlanta Marriott
Professional CPE Marquis Atlanta, GA
2010 SB CPE: Bank Secrecy Act
Program CPE Downtown Marriott Chicago, IL
2010 FY 2010 CPE for Exam Secretaries Kansas City Marriott Kansas
Hotel City, MO
2010 LMSB Technical Training Chicago Hyatt Regency Chicago, IL
2010 Appeals Processing Services CPE Westin Michigan Avenue Chicago, IL
2010 Excise Revenue Agent CPE 2010 Marriott Anaheim, CA
2010 Employment Tax Specialists CPE San Diego,
2010 Omni San Diego Hotel CA
2010 GE CPE Sheraton Hotel Denver, CO
2010 AWSS All Managers CPE Marriott Hotel New
Orleans, LA
2010 Settlement Officers CPE Field Westin Canal Place New
Orleans, LA
2010 All Managers Meeting Intercontinental Hotel Chicago, IL
2010 LMSB Support Staff CPE Crown Plaza Riverwalk San
Antonio, TX
2010 Abusive Transactions Summit Manchester Grand Hyatt San
Training Diego, CA
2010 CI Supervisory Special Agent
Workshops Westin City Center Dallas, TX
2010 EP Rulings and Agreements Hyatt Regency Indiana-
Annual CPE polis, IN
2010 Business Master File Revenue
Officer Training Hilton Memphis, TN
2010 IT Services Leadership Conference Millennium Hotel Cincinnati,
OH
2010 New Hire Orientation --
Settlement Officers Session 2 Crowne Plaza Dallas Dallas, TX
2010 New Attorney Orientation Grand Hyatt Washington,
D.C.
2010 Taxpayer Advocacy Panel Annual Capital Hilton Washington,
Meeting D.C.
2010 EO Basic New Hire Training Harris Tower Atlanta, GA
2010 TAS Leadership Conference Washington Marriott Washington,
Metro Center D.C.
2010 Specialty Managers CPE Sheraton Riverwalk Hotel Tampa, FL
2010 Congressional Affairs Program Capital Hilton Washington,
Conference D.C.
2010 IRS Nationwide Tax Forums Mandalay Bay Las Vegas,
NV
2010 Technical Services Tax Examiner Crowne Plaza Riverwalk San
CPE Antonio, TX
2010 IRS Nationwide Tax Forums Hilton Atlanta, GA
2010 IRS Nationwide Tax Forums Hilton New York,
NY
2010 GLS Technical Training Chicago Hyatt Regency Chicago, IL
2010 All Managers Meeting -- EUES Hilton Atlanta, GA
2010 IRS Nationwide Tax Forums Town & Country Hotel & San
Conf. Center Diego, CA
2010 IRS Nationwide Tax Forums Hyatt Chicago, IL
2010 SCR/Administrative Officer CPE Hilton San
Francisco,
CA
2010 CPE Omni La Mansion San
Antonio, TX
2010 CPE Omni La Mansion San
Antonio, TX
2010 IRS Nationwide Tax Forums Caribe Royale Orlando, FL
2010 Research CPE Omni Hotel San Diego,
CA
2010 S&F Face to Face CPE Sheraton Gunter Hotel San
Antonio, TX
2010 Specialty Administrative Crown Plaza San
Professionals CPE Antonio, TX
2010 Accounts Management Analyst Renaissance Hotel
Technical Training Downtown Atlanta, GA
2010 BMO All Employees CPE Sheraton Atlanta, GA
2010 EOps All Managers Meeting Martinsburg Computing Martins-
Ctr. burg, WV
2010 All Employees CPE Intercontinental Hotel Dallas, TX
2010 FY 2010 CPE for Fraud Technical Blackstone Renaissance Chicago, IL
Advisors
2010 All Managers CPE Wyndam Virginia Crossing Richmond,
Hotel VA
2010 TE/GE Technical Training Hyatt Regency Chicago, IL
2010 ERCS Oracle Discover Kansas City Campus Kansas
City, MO
2010 FM Manager Training Chicago Hyatt Regency Chicago, IL
2010 CI Narcotics Money Laundering El Paso Intelligence El Paso,
Training Seminar Center TX
2010 CI Chicago Field Office CPE Weston Hotel Indiana-
Conference polis, IN
2010 2010 IRS Research Conference The Liaison Capitol Hill Washington,
D.C.
2010 CT Technical Training Chicago Hyatt Regency Chicago, IL
2010 Systems Integration and Tennessee Computing Ctr. Memphis, TN
Coordination Branch All Hands
Meeting -- EOps
2010 California All Managers Meeting Hilton San Jose,
CA
2010 CI Warrants and Forfeiture Asset Fort Lauderdale Ft. Lauder-
Forfeiture CPE dale, FL
2010 Strategy and Finance Analyst CPE Hilton Memphis Memphis, TN
2010 SB/SE Area Hiring Coordinator
Planning Meeting Chicago Hilton Suites Chicago, IL
2010 Field Specialist Issue Focus San Diego Marriott San Diego,
Meeting CA
2010 CI Seattle Field Office CPE Hilton Garden Inn Seattle, WA
2010 W&I Compliance Headquarters Ritz Carlton Atlanta, GA
Analysts Conference
2010 Settlement Officers CPE Campus Hilton Memphis, TN
(East)
2010 Exam Midwest Area All Managers Embassy Suites Hotel Indiana-
Meeting polis, IN
2010 New Hire Orientation (AOs) -- Crown Plaza Dallas, TX
Session I
2010 EP Examinations 403(b) Training Embassy Suites Phoenix, AZ
2010 M&F All Employees Meeting The Admiral Fell Inn Baltimore,
MD
2010 BSA Conference Benson Hotel Portland,
OR
2010 SPEC National Disability City Library Jackson-
Institute (NDI) Mayor Conference ville, FL
2010 Appeals Officers Campus CPE Crowne Plaza West Philadel-
phia, PA
2010 Annual Business Meeting Westin Arlington Gateway Arlington,
VA
2010 Basic Trial Advocacy Dallas CDS Training Site Dallas, TX
2010 Exam Gulf States Area All DoubleTree Dallas, TX
Managers Meeting
2010 EO Exam All Managers Meeting Embassy Suites Chicago, IL
2010 IRS Training Class -- Phase II Sea Palms Hotel St. Simons,
GA
2010 Basic Trial Advocacy Dallas CDS Training Site Dallas, TX
2010 Financial Management Customer
Training Conference Tamarack Conference
Center Beckley, WV
2010 Exam South Atlantic All Managers Marriott Lake Mary,
Meeting FL
2010 Appeals Regional Meeting Wyndham Hotel Chicago, IL
2010 EPTA CPE Hotel Monaco Seattle, WA
2010 IRS-CI/TEOAF Title 31/SAR Review Omni Shoreham San Diego,
Task Force CA
2010 Atlanta Accounts Management Wyndam Riverwalk Hotel Jackson-
Leadership Conference ville, FL
2010 Corporate New Hire Orientation Hilton/Westin Anaheim,
Sep 10 TCO CA, and
Atlanta, GA
2010 North Atlantic Area All Managers Wyndham Princeton Princeton,
CPE Forrestal Hotel NJ
2010 SPEC Leadership Conference Twelve Centennial Atlanta, GA
2010 Basic Trial Advocacy New Carrollton Federal
Bldg. Lanham, MD
2010 Exam North Atlantic Area All Westin Hotel Providence,
Managers Meeting RI
2010 CI National Counterterrorism
Seminar Shades of Green Orlando, FL
2010 LMSB Managers Meeting Embassy Suites Tampa, FL
2010 Exam Western Area All Managers Heathman Lodge Vancouver,
Meeting WA
2010 Personnel Security CPE Pittsburgh Marriot Pittsburgh,
City Center PA
2010 M&P Leadership Conference Bolger Center Potomac, MD
2010 BSP Conference DoubleTree Orlando, FL
2010 Commissioner Leadership
Conference Georgia Tech Hotel Atlanta, GA
2010 Cross-Functional International Park Hyatt Washington,
Training D.C.
2010 Training -- EOps New Carrollton Federal Lanham, MD
Bldg.
2010 PIPDS All Employees Meeting Hyatt Regency Savannah,
GA
2010 SB/SE Collection Gulf States
All Managers Meeting Crowne Plaza Hotel Dallas, TX
2010 Corporate New Hire Orientation
-- April 10 TCO Westin Hotel Dallas, TX
2010 All Managers CPE Marriott Copley Plaza Boston, MA
2010 Exam Technical Service All
Managers Meeting Hyatt Regency Chicago, IL
2010 All Managers Meeting Westin Memphis Beale
Hotel Memphis, TN
2010 Appeals TG Business Meeting Hyatt Regency Baltimore Baltimore,
MD
2010 PIO CPE Hotel Solamar San Diego,
CA
2010 Exam Central Area All Managers DoubleTree Hotel and Pittsburgh,
Meeting Suites PA
2010 Newark Field Office FY10 CPE Thayer Hotel West Point,
NJ
2010 Oakland Field Office FY10 CPE DoubleTree Hotel Rohnert
Park, CA
2010 CPE for IMD Community Georgetown University New Ca-
rrollton,
MD
2010 Fraud Technical Advisors St. Louis Union St. Louis,
Revenue Agent International Station Marriott MO
2010 CLD Administrative CPE Hyatt Baltimore,
MD
2010 EP Examinations Programs Nashville,
and Review CPE Nashville CDS TN
2010 Technical Advisors CPE IRS Appeals Office Washington,
D.C.
2010 CI Refund Crimes All Managers Hilton Charlotte Charlotte,
Meeting University Place NC
2010 Advanced Trial Advocacy Jacksonville CDS Jackson-
Training Site ville, FL
2010 Area 10 Business Meeting Holiday Inn -- Airport Fresno, CA
2010 Account Managers FY11 Leadership
Conference Marriott South Austin, TX
2010 FA Area 4 Leadership Conference Omni Houston, TX
2010 EP MAP Training IRS Office Jackson-
ville, FL
2010 FBSA Secretary CPE 2010 St. Louis Union Station St Louis,
Marriott MO
2010 All Managers Meeting Airlie Center Warrenton,
VA
2010 Account Managers Fresno Courtyard Marriott Portland,
Directorate Leadership Conference OR
2010 Detroit Field Office FY10 CPE Marriott East
Lansing, MI
2010 EP Conflict Management Chet Holifield Federal Phila-
Building delphia, PA
2010 CCS Filing and Payment Compliance Hyatt Regency St. Louis,
MO
2010 FA Area 3 Leadership Conference Hyatt Atlanta, GA
2010 W&I Compliance Leadership
Conference Georgia Tech Hotel Atlanta, GA
2010 Reasonable Accommodations DoubleTree Dallas, TX
2010 National Research Project Nashville CDS Nashville,
Training TN
2010 FA Area 2 Leadership Conference Gateway Center Cincinnati,
OH
2010 EPSS Leadership Conference Renaissance Atlanta, GA
2010 SB:SP:EG Estate and Gift Tax Marriott Waterside
Managers CPE 2010 Hotel and Marina Tampa, FL
2010 Andover Compliance Service
Leadership Conference Nashua Radisson Castle Nashua, NH
2010 CPE for IMD Community New Carrolton Federal Kansas
Building City, KS
2010 Compliance FY10 Leadership
Conference Grand Occasions Fresno, CA
2010 FA Area 1 Leadership Conference Andover Campus Andover, MA
2010 SB/SE Collection Central Area
All Managers Meeting Fairfield Inn Weirton, WV
2010 Accounts Management Leadership
Conference The W Hotel Atlanta, GA
2010 Accounts Management Leadership Atlantis Marine World Riverhead,
CPE NY
2010 All Employees CPE Wyndham Virginia Glenn Allen,
Crossings WV
2010 FY10 IRS Ogden Accounts
Management Center All Managers
CPE Speed of Trust Marriott Ogden, UT
2010 SP Joint Leadership Conference Little America Hotel Salt Lake
City, UT
2010 All Managers FY 10 Leadership
Conference Marriott Ogden, UT
2010 Accounts Management Leadership
Conference Hilton Hotel Memphis, TN
2010 Kansas City Compliance Leadership John Knox Village Lee's
Conference Summit, MO
2010 Compliance Leadership Conference Austin Marriot Austin, TX
2010 Accounts Management CPE Memphis Campus Memphis, TN
2010 Atlanta Field Compliance
Services Leadership Conference Twelve Hotel Atlanta, GA
2010 Accounts Management Training Day Tusculum Church of Nashville,
Christ TN
2011 Estate and Gift Tax Attorney Marriott Waterside
FY 11 CPE Hotel and Marina Tampa, FL
2011 IRS Nationwide Tax Forums Gaylord National Harbor Washington,
D.C.
2011 Taxpayer Advocacy Panel Annual Capital Hilton Washington,
Meeting D.C.
2011 TAS Leadership Conference Fairmont Hotel Washington,
D.C.
2011 Congressional Affairs Program Fairmont Hotel Washington,
Conference D.C.
2011 Fraud Technical Advisors Phase Marriott Mission Valley San Diego,
II (course delivery) CA
2011 IRS Nationwide Tax Forums Caesar's Palace Las Vegas,
NV
2011 Annual Asset Forfeiture CPE W Scottsdale Scottsdale,
AZ
2011 Fraud Emerging International St. Louis Union Station St. Louis,
Issues Marriott MO
2011 All Managers Meeting -- EUES Marriott Quorum Dallas, TX
2011 All Managers Meeting Hyatt Regency Baltimore Baltimore,
MD
2011 IRS Nationwide Tax Forums Marriott Atlanta, GA
2011 IRS Nationwide Tax Forums Hilton Dallas, TX
2011 New Hire Orientation (AOs) DoubleTree Hotel Dallas, TX
2011 IRS Nationwide Tax Forums San Jose Convention San Jose,
Center CA
2011 IRS Nationwide Tax Forums Hilton Orlando, FL
2011 BSA Conference Drake Hotel Chicago, IL
2011 CI Senior Leadership Meeting Sheraton Hotel McLean, VA
2011 SB/SE Collection AIQ All Hilton Indianapolis Indiana-
Managers Meeting polis, IN
2011 All Managers CPE Wyndam Virginia Crossing Richmond,
Hotel VA
2011 Fuel Compliance Agent (FCA) Brentwood Training Brentwood,
Phase III Center TN
2011 All Managers Meeting Baltimore Marriott Baltimore,
MD
2011 Senior Managers Meeting Park Plaza Hotel and
Tower Boston, MA
2011 CI Questionable Refund Program Gallery One Ft. Lauder-
and RPP Meeting dale, FL
2011 All Employees CPE Intercontinental Chicago, IL
2011 NATIA Conference Tampa Convention Ctr. Tampa, FL
2011 Basic Trial Advocacy Dallas CDS Training Site Dallas, TX
2011 New Hire Orientation
(Settlement Officers) DoubleTree Hotel Dallas, TX
2011 CI National Counterterrorism
Seminar Shades of Green Orlando, FL
2011 Basic Trial Advocacy Dallas CDS Training Site Dallas, TX
2011 Leadership Conference New York New York Hotel Las Vegas,
NV
2011 SPEC National Disability
Institute Mayor Conference Federal Reserve Boston, MA
2011 CIMIS Equipment Coordinator CPE Westin Canal Place Hotel New
Orleans, LA
2011 Domestic Terrorism and Frivolous
Filer Training Conference Sheraton Hotel Chicago, IL
2011 New Attorney Orientation IRS Main Building Washington,
D.C.
2011 EO International Training Nashville CDS Nashville,
TN
2011 Coordinated Issues Cases Brentwood Training Brentwood,
Excise Cases Center TN
2011 Asset Forfeiture Basic Training Chet Holified Federal Laguna
Building Niguel, CA
2011 Issue Practice Group (CAM and DoubleTree by Hilton, Atlanta,
DCE) Buckhead GA
2011 SB/SE Collection Midwest Area DoubleTree Milwaukee Milwaukee,
All Managers Meeting City Center WI
2011 PIPDS All Employees Meeting Intercontinental Harbor Baltimore,
Court MD
2011 SPEC National Disability Federal Reserve Chicago,
Institute (NDI) Mayor Conference IL
2011 EP Voluntary Compliance Workshop DoubleTree Hotel Austin, TX
2011 CI Asset Forfeiture Training Marriott Hotel Kansas City,
Conference MO
2011 Charlotte Field Office Asset Embassy Suites Charlotte,
Forfeiture Training/Town Hall NC
Meeting
2011 Accounts Management FY11 Marriott Ogden, UT
Leadership Conference Continuous
Improvement Starts With One
2011 Asset Forfeiture Conference --
New Orleans Field Office Oxford Conference Center Oxford, MS
2011 Cincinnati SP Leadership Gateway Center Covington,
Conference KY
2011 M&P Leadership Conference Video Conference Video
Conference
2012 Flow Through Entity IRS Space Various
Cities
2012 Flow Through Entity IRS Space Various
Cities
2012 EP Examinations Phase III New Earle Cabell Federal
Hire Training Building Dallas, TX
2012 Congressional Affairs Program Fairmont Hotel Washington,
Conference D.C.
2012 TAS Leadership Conference Hyatt Arlington Arlington,
VA
2012 New Hire Orientation for FY13 DoubleTree Hotel Dallas, TX
2012 National Tax Forum Hilton New York,
NY
2012 National Tax Forum Caesar's Palace Las Vegas,
NV
2012 CI Refund Crimes CPE Omni La Mansion Del San
Rio Hotel Antonio, TX
2012 National Tax Forum Hyatt McCormick Place Chicago, IL
2012 National Tax Forum Hilton Orlando, FL
2012 National Tax Forum Marriott Atlanta, GA
2012 National Tax Forum Town and Country San Diego,
CA
2012 Advanced Training King and Prince Hotel St. Simons,
GA
2012 PFTG QA Consistency Forum IRS CDS Training Facility Pittsburgh,
PA
2012 LITC Grantee Conference Capitol Hilton Washington,
D.C.
2012 Fiduciary Abusive Trust Chet Holifield Federal Laguna
Building Niguel, CA
2012 New Attorney Orientation IRS Main Building Washington,
D.C.
2012 Fresno SP Leadership Conference Golden Palace Fresno, CA
2012 Austin SP Leadership Conference Wyndham Hotel Austin, TX
2012 Natural Resources and Ronald Deaton Civic Los
Construction Industry DFO -- Auditorium Angeles, CA
West Town Hall Meeting
2012 Ogden SP Leadership Conference Davis Conference Center Layton, UT
2012 Kansas City SP Leadership Kansas City Campus Kansas
Conference City, MO
2012 Compliance Leadership Conference Austin Campus Austin, TX
Fiscal Year 2010 Estimated Cost
Fiscal Year 2011 Estimated Cost
Fiscal Year 2012 Estimated Cost
Grand Total Estimated Cost for 225 Conferences
______________________________________________________________________________
Source: Chief Financial Officer, November 2012.2
1 Abbreviations used in this table are defined in Appendix V.
2 The Treasury Inspector General for Tax Administration has reviewed only the SB/SE Division Leadership Conference described in this report and has not performed any detailed analyses of the other conferences held during FYs 2010 through 2012.
END OF FOOTNOTES TO APPENDIX IV
* * * * *
Appendix V
Legend for Abbreviations Listed in Appendix IV
______________________________________________________________________________
Acronym Definition
______________________________________________________________________________
AIQ Advisory & Insolvency Quality
AO Appeals Officer
AWSS Agency-Wide Shared Services
BMO Business Modernization Office
BSA Bank Secrecy Act
BSP Business System Planning
C&L Communication & Liaison
CAM Change in Accounting Method
CCS Campus Compliance Services
CFO Chief Financial Officer
CI Criminal Investigation
CIMIS Criminal Investigation Management Information
System
CT Criminal Tax
DCE Detection Controlled Estimate
DFO Director of Field Operations
EG Estate and Gift Tax
EO Exempt Organizations
EOps Enterprise Operations
EP Employee Plans
EPSS Electronic Products & Services Support
EPTA Employee Plans Team Audit
ERCS Examination Return Control System
EUES End User Equipment & Services
FA Field Assistance
FM Finance and Management
FO Field Office
GE Government Entity
GLS General Legal Services
HCO Human Capital Office
IMD Internal Management Documents
IT Information Technology
LB&I Large Business & International
LITC Low Income Taxpayer Clinic
LMSB Large and Midsize Business
M&F Management and Finance
M&P Media & Publications
MITS Modernization & Information Technology Services
NATIA National Technical Investigators' Association
NHQ National Headquarters
PFTG Prefiling Technical Guidance
PGLD Privacy, Government Liaison, & Disclosure
PIO Public Information Officer
PIPDS Privacy, Information Protection, and Data
Security
QA Quality Assurance
RAS Research Analysis Statistics
RPP Return Preparer Program
S&F Strategy and Finance
SAR Suspicious Activity Report
SB Small Business
SCR Senior Commissioner Representative
SP Submission Processing
SPEC Stakeholder Partnership, Education, &
Communication
TAS Taxpayer Advocate Service
TCO Tax Compliance Officer
TE/GE Tax Exempt/Government Entities
TEOAF Treasury Executive Officer of Asset Forfeiture
W&I Wage & Investment
______________________________________________________________________________
Source: IRS Intranet.
Appendix VI
Internal Revenue Service Conferences
Held During Fiscal Years 2010 Through 2012
Ranked by Highest Average Cost Per Event
______________________________________________________________________________
Average
Number Cost
IRS Operating Division of Events Total Cost Per Event
______________________________________________________________________________
Taxpayer Advocate Service 10 $4,922,098 $492,210
SB/SE 44 $19,718,519 $448,148
Large Business and International 7 $1,958,672 $279,810
Chief Counsel 16 $3,545,466 $221,592
Appeals 16 $3,368,085 $210,505
Modernization and Information
Technology Services 6 $1,100,768 $183,461
Agency-Wide Shared Services 11 $1,948,844 $177,168
Communication and Liaison 19 $3,254,266 $171,277
Tax Exempt and Government Entities 14 $2,181,806 $155,843
National Headquarters 1 $112,753 $112,753
Criminal Investigation 29 $3,173,861 $109,443
Human Capital Office 6 $611,528 $101,921
Research, Analysis, and Statistics 3 $283,151 $94,384
Chief Financial Officer 2 $181,360 $90,680
Office of Privacy, Government Liaison,
and Disclosure 2 $159,415 $79,708
Wage and Investment 39 $2,111,208 $54,134
Totals 225 $48,631,800 $216,141
______________________________________________________________________________
Source: Chief Financial Officer, November 2012.
Appendix VII
Summary of Costs
for the Anaheim Conference
______________________________________________________________________________
Category Cost
______________________________________________________________________________
Travel Including Lodging $3,754,578
Guest Speakers $135,350
Information Corridor Travel and Supplies $71,381
Videos $50,187
Miscellaneous/General Printing $28,138
Automated Response Tools $24,828
Brief Bags $15,699
Folders $12,763
Portfolios With Imprinted Logos $10,209
Lanyards and Badge Holders $6,060
Commissioner Awards Plaques $4,500
Closed Captioning $4,496
Books and Bookmarks $3,076
Journals $2,449
E-Ticket Card Decks $2,072
Sign Language $1,803
Engraved Travel Mugs and Clocks $1,534
Miscellaneous Supplies $1,169
Imprinted Sticky Note Pads $1,165
Sleeves for Puzzle Pieces $901
Digital Video Discs $825
Total Costs $4,133,183
______________________________________________________________________________
Source: SB/SE Division management. Costs are rounded.
Appendix VIII
Guest Speakers Procured
for the Anaheim Conference
______________________________________________________________________________
Guest Speaker Cost Service Provided Topic
______________________________________________________________________________
Frans Johannson $27,500 Keynote The Medici Effect
Two Presentations
Erik Wahl $17,000 Keynote The Art of Vision
Two Presentations
Shawn Anchor $11,430 Four 90-Minute Strategies for
Workshops Increasing Employee
Engagement
Steve Robbins $10,822 Four 90-Minute Unintentional
Workshops Intolerance
John McCann $8,983 Four 90-Minute Courageous Decision
Workshops Making & Rankism
Antony Bell $8,917 Four 90-Minute How Do I Become a
Workshops Great Leader?
Dr. Timothy Clark $8,802 Four 90-Minute The Manager's Role
Workshops in Implementing
Change
Dr. Evan Offstein $8,392 Four 90-Minute Making Telework Work
and Jay Morwick Workshops
Sharon Ellison $7,000 Four 90-Minute Talk Matters
Workshops
Dr. Pete Hammett $6,406 Four 90-Minute Crisis Leadership
Workshops
Dr. Jennifer Kahnweller $5,512 Four 90-Minute Leading With Quiet
Workshops Confidence
John Wukovits $4,864 Four 90-Minute Eisenhower's
Workshops Leadership
Mark Nishan $3,500 Four 90-Minute Positive Leadership
Workshops
Dr. Mark Thurston $3,222 Four 90-Minute Mindfulness: A
Workshops Pathway to Leadership
Vincent Stovall $3,000 Four 90-Minute Root Canal or Public
Workshops Speaking?
Total Costs for Guest
Speakers $135,350
______________________________________________________________________________
Source: IRS sole-source justification documents; Standard Forms 182,
Request, Authorization, Agreement & Certification of Training; and SB/SE
Division management. Total costs are rounded up.
Appendix IX
Anaheim Conference Agenda
Source: SB/SE Division management.
* * * * *
Appendix X
Anaheim Conference Workshops
on August 25, 2010
______________________________________________________________________________
Workshop Title Speaker Times
______________________________________________________________________________
How Do I Become a Great Leader? Antony Bell 8:00, 10:00,
1:00, 3:00
The Manager's Role in Implementing Tim Clark 8:00, 10:00,
Change 1:00, 3:00
Making Telework Work Evan Offstein, 8:00, 10:00,
Jay Morwich 1:00, 3:00
Unintentional Intolerance: Don't Be Steve Robbins 8:00, 10:00,
So N.I.C.E 1:00, 3:00
Strategies for Increasing Employee Shawn Achor 8:00, 10:00,
Engagement 1:00, 3:00
Leading With Quiet Confidence: Jennifer 8:00, 10:00,
The Introverted Leader Kahnweiler 1:00, 3:00
Mindfulness: A Pathway to Leadership Mark Thurston 8:00, 10:00,
Effectiveness 1:00, 3:00
Talk Matters! Authentic Conversations Sharon Ellison 8:00, 10:00,
1:00, 3:00
Root Canal or Public Speaking -- Vincent Stovall 8:00, 10:00,
I'll Take the Root Canal 1:00, 3:00
Political Savvy: How Not to Shoot IRS Speakers 8:00, 10:00,
Yourself in the Foot 1:00, 3:00
Why Doesn't Somebody Do Something? Pete Hammett 8:00, 10:00,
1:00, 3:00
Creative Employee Engagement IRS Speakers 8:00, 10:00,
1:00, 3:00
Flash Mentoring IRS Speakers 8:00, 10:00,
1:00, 3:00
Positive Leadership -- Strategies Mark Nishan 8:00, 10:00,
for Extraordinary Performance 1:00, 3:00
Ike John Wukovitz 8:00, 10:00,
1:00, 3:00
Connecting the Dots: Having a IRS Speakers 1:00, 3:00
Customer Focus
Writing Performance Reviews IRS Speakers 8:00, 10:00,
1:00, 3:00
Is this Reasonable? Meeting the IRS Speakers 8:00, 10:00,
Needs of Your Employees 1:00, 3:00
Going Beyond, Beyond IRS Speakers 8:00, 10:00,
1:00, 3:00
What's Hot, What's New, What's Going IRS Speakers 8:00, 10:00,
On 1:00, 3:00
Compliance Briefing: Updates on IRS Speakers 8:00, 10:00,
Current Tax Law and IRS Initiatives 1:00, 3:00
Strategic Thinking IRS Speakers 8:00, 10:00,
1:00, 3:00
Rankism John McCann 8:00, 10:00
Ethical Fitness John McCann 1:00, 3:00
______________________________________________________________________________
Source: SB/SE Division management.
Appendix XI
Management's Response to the Draft Report
April 29, 2013
MEMORANDUM FOR
MICHAEL E. MCKENNEY
ACTING DEPUTY INSPECTOR GENERAL FOR AUDIT
FROM:
Pamela J. LaRue
Chief Financial Officer
SUBJECT:
Draft Audit Report -- Review of the
August 2010 Small Business/Self-Employed Division's
Conference in Anaheim, California (Audit # 201310024)
The IRS appreciates your review of the August 2010 Small Business/Self-Employed (SB/SE) Division's Manager Meeting. One year ago, when questions were raised with respect to the meeting, the IRS formally requested that the Treasury Inspector General for Tax Administration (TIGTA) review the meeting to determine that all IRS and government procedures were followed. We are pleased that TIGTA found no instances of fraud or violations of the Federal Acquisition Regulations.
The meeting took place at a time where the IRS needed to ensure that managers had proper training to address significant new programs, major staff and manager turnover and a substantial increase in security threats. However, since that time, the technology and budget environment has changed, and during the past three years, the IRS has put in place an extensive series of procedures with regard to conferences. Clearly, a conference like this from three years ago -- and many of the instances described -- would not take place under our expanded and strengthened oversight process. In addition, as discussed in more detail below, the IRS has elevated the conference approval processes so that all large meetings must be approved centrally and not solely by individual business units.
While more specifics regarding the meeting will be addressed below, it is important to note that in the three years since the meeting, the IRS has implemented comprehensive financial controls over meeting and conference approval processes and dramatically cut expenditures related to meetings and training. The expenditures related to this 2010 meeting are not reflective of the current spending environment at the IRS or the spending that has occurred over the last several years. As shown in the report, the number of large meetings decreased 84 percent between Fiscal Year (FY) 2010 and FY 2012. The costs of these meetings decreased 87 percent over that time period. Costs for FY 2013 will be even lower.
Not only are costs for meetings and conferences significantly down since FY 2010, costs for all training-related travel were 68 percent lower from FY 2010 to FY 2012. To date, our travel and training expenses are down more than 80 percent since FY 2010. In fact, in FY 2012, more than 90 percent of our training courses were delivered virtually. Compared with FY 2010, the percentage of training hours delivered online has nearly doubled and our cost per hour of overall training has been reduced by 46 percent.
The IRS takes seriously our obligations to be good stewards of government resources. As detailed below, the IRS has instituted a number of procedures over the last three years that ensure sound financial decisions are being made in regard to spending. Since FY 2009, we have achieved $1 billion in budget savings and efficiencies.
With respect to the meeting on which TIGTA focused, its purpose was to ensure that managers had proper training to lead their employees and adapt to significant changes that were occurring at that time. The SB/SE Division comprises almost one-third of the total IRS work force and includes our largest enforcement staff, providing for the majority of the approximately $50 billion in annual enforcement revenue that the IRS collects. With the significant challenges facing the IRS, development of managers is critical to ensuring continued high performance across the IRS. At the time of this conference, almost 30 percent of SB/SE managers were either new to the division or new to management within the prior two years. Furthermore, SB/SE had grown by over 4,400 hires in FY 2009 and FY 2010 as a result of hiring initiatives approved by Congress. This division also faced unique challenges in FY 2010 and had to manage through significant employee concerns about safety and security after a member of the SB/SE management ranks was killed in a suicide attack against the IRS building in Austin, Texas. Employee safety and security training were important topics at the meeting with presentations by security personnel from TIGTA as well as the IRS.
Until late 2010, it was IRS practice to periodically conduct continuing professional education conferences on a national scale because of the importance and value of in-person training. However, in light of the continuing fiscal situation, improvements in technology, and recognizing the substantial costs of nationwide training meetings such as these, these types of meetings no longer occur. While the aggregate cost of the meeting is significant, it is important to note that the vast majority of the cost -- more than 90 percent -- resulted from travel and authorized government per diem for the attendees. Although the average cost per attendee was reasonable, the IRS recognizes that a number of less significant costs warranted additional scrutiny and were not the best use of government resources. Under subsequently issued guidance, many of these expenditures, including promotional items or themed videos, would not be authorized. Cost savings guidance issued since this event include the following:
December 14, 2010 -- Deputy Commissioner -- Fiscal Year (FY) 2011 Hiring Freeze Guidance -- implementing exception-only hiring freeze
February 9, 2011 -- Commissioner -- email to employees on cost-cutting
February 10, 2011 -- Chief Financial Officer -- FY 2011 Budget Operating Guidance -- working toward 50 percent reductions in non-mission critical travel, including management conferences
February 28, 2011 -- Deputy Commissioner -- FY 2011 Budget Operating Guidance Follow Up -- further restricting travel and training
March 4, 2011 -- Deputy Commissioner -- Workspace Budget Challenges -- reducing space holdings to cut cost
August 19, 2011 -- Deputy Commissioner -- Purchase of Promotional items -- generally discontinuing purchase of any promotional items
November 23, 2011 -- Deputy Commissioner -- FY 2012 Budget Operating Guidance -- calling for further reductions in travel and training
December 1, 2011 -- Deputy Commissioner -- Approval of Conference-Related Activities -- implementing enhanced approval process for conference spending
March 2, 2012 -- Chief Financial Officer -- Interim Guidance Memorandum, Interim Guidance on Policies and Controls on Event-Related Spending -- implementing enhanced approval process for conference spending
May 4, 2012 -- Director, Office of Procurement Policy -- Acquiring Training, Meeting and Conference Space -- additional guidance for the selection of locations and facilities for IRS training activities
May 8, 2012 -- Deputy Commissioner -- Reinforcing Travel Policies and Updating Current Procedures -- reinforcing adherence to polices on travel expenditures
May 29, 2012 -- Deputy Commissioner -- Updating and Reinforcing Policies on Conferences, Group Conferences and Training -- reinforcing travel policies
December 6, 2012 -- Deputy Commissioner -- Fiscal Year 2013 Budget Operating Guidance -- further restricting travel and training
December 27, 2012 -- Chief Financial Officer -- Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending -- implementing Treasury Directive 12-70, Hosted or Sponsored Conference Planning and Approval
December 28, 2012 -- Chief Financial Officer -- Guidance for Tracking Event-Related Spending -- implementing the requirement to track conference spending
February 21, 2013 -- Deputy Commissioner -- Servicewide Video Editorial Board -- creating a review board to oversee spending on video productions
March 7, 2013 -- Deputy Commissioner -- Additional Review on Video Production -- implementing mandatory high-level review on all video productions
March 12, 2013 -- Deputy Commissioner -- FY 2013 Budget Sequestration Operating Guidance -- increasing scrutiny and controls over hiring, travel, training, printing, contracts and overtime
It is also important to note that many of the issues raised in the report, such as the use of event planners, the receipt of room upgrades, and the welcome reception and breakfast provided by the hotel, did not entail the use of any additional government resources. While the IRS is mindful of the sensitivity of the issues raised, these did not impact the overall cost of the meeting. The IRS has instituted new procedures in these areas as well.
The IRS agrees with all of TIGTA's recommendations, and in most cases, has already implemented corrective actions in advance of receipt of the report. Our detailed comments to your recommendations are discussed in the attachment. If you have any questions, please contact me, or a member of your staff may contact Bill Maglin, Associate Chief Financial Officer for Financial Management, at (202) 435-5540.
Attachment
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Attachment
RECOMMENDATION 1
The IRS Chief Financial Officer (CFO) should, for conferences held after issuance of the March 2012 procedures, verify that appropriate information is being tracked and maintained by IRS offices to accurately account for actual conference costs and attendance.
CORRECTIVE ACTION 1-1
The CFO issued the December 27, 2012 Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, requiring that documentation be maintained by the business units for conference and event-related spending. The CFO issued the December 28, 2012 memorandum, Guidance for Tracking Event-Related Spending, requiring that business units track actual costs and maintain documentation for conference and event-related spending.
RESPONSIBLE OFFICIAL
Chief Financial Officer
IMPLEMENTATION DATE
December 28, 2012 (Completed)
CORRECTIVE ACTION 1-2
The CFO will update the December 27, 2012 Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, to include a requirement for CFO to review on a rotating basis documentation maintained by the business units for conference and event-related spending.
RESPONSIBLE OFFICIAL
Chief Financial Officer
IMPLEMENTATION DATE
August 31, 2013
RECOMMENDATION 2
The IRS CFO should implement a policy to determine whether specific sessions at conferences qualify for CPE credit.
CORRECTIVE ACTION
The IRS Human Capital Office (HCO) will strengthen the policy and guidance for determining eligibility for course credit in IRM 6.410.1.2.6, The Learning and Education Policy Manual. The HCO will also strengthen the policy and guidance for determining when a course may be eligible for CPA CPE certification credit in IRM 6.410.1.3.3.3, Credit for Continuing Professional Education for Certified Public Accountants.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
August 31, 2013
RECOMMENDATION 3
The IRS CFO should reemphasize existing procedures to ensure business units contact Centralized Delivery Services (CDS) function personnel to coordinate planning of any future conference or event. Further, additional procedures should be developed that require all documentation supporting the selections of non-Government facilities for future conferences be maintained for management review.
CORRECTIVE ACTION 3-1
The HCO will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to include procedures that require all documentation supporting the selection of non-Government facilities for future conferences be maintained for management review.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
October 1, 2013
CORRECTIVE ACTION 3-2
The Agency-Wide Shared Services (AWSS) Procurement office will update and reissue Policy and Procedures Memorandum No. 70.24, Acquiring Training, Meeting and Conference Space, to reflect guidance in Treasury Directive 12-70, Hosted Conference/Special Event Planning, to reemphasize existing procedures for planning conferences or events and maintaining supporting documentation.
RESPONSIBLE OFFICIAL
Agency-Wide Shared Services
IMPLEMENTATION DATE
August 31, 2013
RECOMMENDATION 4
The IRS CFO should develop and implement procedures outlining the appropriate use of outside event planners when planning IRS conferences. This should include how event planners are selected and compensated.
CORRECTIVE ACTION 4-1
The CFO issued the December 27, 2012 Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, which limits the use of external event planners.
RESPONSIBLE OFFICIAL
Chief Financial Officer
IMPLEMENTATION DATE
December 27, 2012 (Completed)
CORRECTIVE ACTION 4-2
The HCO will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to include guidance on the use, selection and compensation if event planners must be used.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
October 1, 2013
RECOMMENDATION 5
The IRS CFO should establish procedures clearly outlining when planning trips should be performed for conferences. These procedures should require documentation of the reason and estimated cost for planning trips, along with the requirement that local IRS employees are used to the extent possible to perform these planning trips. This information should be provided to a designated management official or an executive for approval.
CORRECTIVE ACTION
The HCO will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to emphasize the requirement to document the reason for and estimated cost of planning trips and to maintain documentation of executive approval of the planning trip.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
October 1, 2013
RECOMMENDATION 6
The IRS CFO should establish procedures to clearly outline the need for and value provided by any conference videos for future conferences. The purpose and use of videos should be clearly detailed in any request for a conference and include the applicable costs in the approval request.
CORRECTIVE ACTION
In February 2013, the IRS created the Servicewide Video Editorial Board (SVEB), which is chaired by the Communications and Liaison Communications Director and includes the Deputy Human Capital Officer and the Wage & Investment Communications Director. The SVEB reviews and approves all video projects planned throughout the IRS, considering cost, topic and tone, including training and education videos, webinars, vignettes, videos for external placement on YouTube, IRS.gov and related web sites, and any other ad hoc taping projects such as videos for use at IRS meetings and conferences. A core part of the SVEB's efforts will be focused on ensuring that internal and external videos have a sound business purpose and advance tax administration interests, either through taxpayer education or internal training. The videos produced for the 2010 meeting would not be approved today under the SVEB's criteria. Mandatory higher level review is also currently in place.
RESPONSIBLE OFFICIAL
Communications and Liaison
IMPLEMENTATION DATE
February 21, 2013 (Completed)
RECOMMENDATION 7
The IRS CFO should evaluate whether the solicitation of hotel room suite upgrades for use by IRS employees should be allowed in agreements with hotels hosting IRS conferences in the future. In addition, any agreement with hotels containing hotel suite upgrades should be approved by the applicable business unit executive.
CORRECTIVE ACTION 7-1
The HCO will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to prohibit the solicitation of room suite upgrades and where upgrades are offered at no cost to the IRS, require approval by the applicable business unit executive.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
October 1, 2013
CORRECTIVE ACTION 7-2
The AWSS Procurement office will update and reissue Policy and Procedures Memorandum No. 70.24, Acquiring Training, Meeting and Conference Space, to prohibit the solicitation of room suite upgrades and where upgrades are offered at no cost to the IRS, require approval by the applicable business unit executive.
RESPONSIBLE OFFICIAL
Agency-Wide Shared Services
IMPLEMENTATION DATE
August 31, 2013
RECOMMENDATION 8
The IRS CFO should identify all local employees who claimed per diem travel related to the conference and ensure Forms W-2 are issued to all employees for taxable travel as appropriate.
CORRECTIVE ACTION
The IRS will identify local employees who did not receive a Form W-2 for taxable travel and will issue them as appropriate.
RESPONSIBLE OFFICIAL
Chief Financial Officer
IMPLEMENTATION DATE
June 1, 2013
RECOMMENDATION 9
The IRS CFO should establish procedures to clearly outline the need for and value provided by any "information corridors"/exhibitor halls and other technology for future conferences. The purpose and use of any exhibitor hall or technology should be clearly detailed in any request for a conference and include the applicable costs, including giveaway items, in the approval request.
CORRECTIVE ACTION 9-1
The CFO issued the December 27, 2012 Interim Guidance Memorandum, Reissued Interim Guidance on the Approval Process for Event-Related Spending, which outlines the requirements to include the full-cost of events when submitting events for approval.
RESPONSIBLE OFFICIAL
Chief Financial Officer
IMPLEMENTATION DATE
December 27, 2012 (Completed)
CORRECTIVE ACTION 9-2
The HCO will update IRM 6.410.1, Leadership and Education, Selection of Off-Site Locations and Facilities for Training, to reflect guidance on the analysis of the use of exhibitor halls and specialized technology.
RESPONSIBLE OFFICIAL
Human Capital Office
IMPLEMENTATION DATE
October 1, 2013
- Institutional AuthorsTreasury Inspector General for Tax Administration
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2013-13626
- Tax Analysts Electronic Citation2013 TNT 108-34