1.1.30 Office of Planning, Programming, and Audit Coordination

Manual Transmittal

December 22, 2016

Purpose

(1) This transmits IRM 1.1.30, Organization and Staffing, Planning, Programming, and Audit Coordination.

Material Changes

(1) This IRM contains the responsibilities and functional statements for the office of Planning, Programming, and Audit Coordination resulting from the creation of a new office with new missions, including some realignment of Chief Financial Officer (CFO) functions.

Effect on Other Documents

None.

Audience

IRS employees Servicewide

Effective Date

(12-22-2016)

Related Resources

Government Accountability Office (GAO) Report 14-605, Long-Term Strategy and Return on Investment Data Needed to Better Manage Budget Uncertainty and Set Priorities

Government Performance Results Modernization Act of 2010

IRM 1.4.30, Resource Guide for Managers, Monitoring Internal Control Planned Corrective Actions

IRM 1.5.1, Managing Statistics in a Balanced Measurement System, The IRS Balanced Performance Measurement System

IRM 11.5.1, Audit Process for General Accountability Office (GAO) and Treasury Inspector General for Tax Administration (TIGTA)

IRS Restructuring Reform Act of 1998 (RRA 98)

OMB Circular No. A-11, Part 2, Preparation and Submission of Strategic Plans, Annual Performance Plans, and Annual Program Performance Reports

Planning, Programming, and Audit Coordination intranet website

Tommy Smith
Chief, Planning, Programming, and Audit Coordination

Chief, Planning, Programming, and Audit Coordination

  1. The Chief, who reports to the Deputy Commissioner for Operations Support (DCOS), has primary supervisory responsibility for the Office of Planning, Programming and Audit Coordination (PPAC), including oversight and control of all policy decisions and implementation.

  2. The Mission of the Office of Planning, Programming, and Audit Coordination is to drive strategic priorities and continuous Servicewide improvement with unified decision-making, investment planning, and audit coordination. Its vision is to foster a culture of transparent and strategic decision-making, supported by data and analysis, representing “One IRS.” PPAC facilitates, assimilates, and coordinates leadership for shared responsibility for these improvements across the IRS.

  3. To accomplish this mission, the Chief:

    1. Coordinates with the Senior Executive Team, internal heads of office and staff.

    2. Advises the Commissioner, DCOS, Deputy Commissioner for Services and Enforcement, and IRS senior leadership on planning, programming/investment analysis, performance measurement, and audit coordination.

    3. Serves as the principle IRS spokesperson with internal and external stakeholders on planning, programming/investment analysis, performance measurement, and audit coordination.

    4. Creates connections across the Service in strategic and investment planning, performance measures, and oversight audit activities.

    5. Acts as a bridge between IRS business units to transfer knowledge and best practices in its program areas.

    6. Develops and fosters working relationships with partner organizations.

    7. Facilitates senior leadership establishing and communicating IRS strategic priorities.

    8. Provides leadership on strategic transformations.

    9. Establishes a planning and investment process to produce a Strategic Plan and bridge the gap between the Strategic Plan and investment decision-making.

    10. In coordination with internal organizations, develops operational and performance goals, and develops a Service-wide investment and performance plan that supports resource allocation decision-making.

    11. Oversees the full life-cycle of the audit process for the IRS and elevates audits to IRS Senior Leadership for awareness.

    12. Tracks and monitors through the Office of Audit Coordination the execution of post-audit corrective action plans that address cited audit recommendations.

    13. Defines, monitors, and communicates key performance goals for PPAC.

    14. Analyzes program trends.

    15. Develops clear process standards within the program.

    16. Directs the implementation of PPAC policy and procedures.

  4. The PPAC organization has three functional offices:

    1. Strategic Planning Office

    2. Investment Analysis Office

    3. Audit Coordination Office

Strategic Planning Office

  1. The Strategic Planning Office, coordinates development of the IRS Strategic Plan and manages performance measurement and enhanced governance.

  2. The Director of the Strategic Planning Office reports to the Chief of PPAC.

  3. The PPAC Strategic Planning function:

    1. Coordinates the development of the IRS Strategic Plan with annual enterprise guidance.

    2. Reinvigorates the IRS’s strategic planning process to prioritize use of constrained resources from an enterprise perspective to advance objectives in the IRS Strategic Plan and related strategic initiatives.

    3. Establishes and manages the strategic planning process and creates the framework for the development of operational plans.

    4. Develops and delivers a strategic planning process that routinely adjusts corporate strategy based on changes in the internal and external environments.

    5. Conducts environmental scans to develop new, or revise existing, strategic priorities examining the broader tax administration environment.

    6. Submits revised/new strategic priorities subject to review and approval by the Senior Executive Team.

    7. In coordination with the Operating Units, PPAC develops a capability portfolio management process and aligns a set of associated programs and outcome goals, and submits them for review and approval by the SET.

    8. Develops annual enterprise guidance based on strategic priorities and organizational capabilities.

    9. At regular intervals, updates the strategic plan as needed, including strategic priorities, objectives/capabilities and programs, and performance measures.

    10. Communicates and engages with internal and external stakeholders.

  4. The PPAC Performance Management function:

    1. Manages the IRS’s performance measurement and reporting processes.

    2. Establishes strategic-level performance measures and creates mechanisms and reports using performance data and analytics.

    3. Monitors and maintains the IRS budget-level and oversight board performance measures, including reporting of performance actuals (monthly and quarterly) internally and externally.

    4. Prepares supporting performance information for IRS budget requests.

    5. Coordinates, develops, and maintains information in the budget-level and Oversight Board performance measures data dictionaries.

    6. Monitors and maintains the IRS Business Performance Review documents, including coordination of all external reporting regarding performance.

    7. Coordinates and develops monthly, quarterly, and year-end reporting information and documentation.

    8. Administers Presidential Initiatives for the IRS to facilitate compliance with performance requirements.

    9. Facilitates periodic enterprise level review of organizational performance against the Strategic Plan.

  5. The PPAC Enhanced Governance function:

    1. Establishes an Enterprise Governance Maintenance Process that provides structure to standing-up, maintaining, and retiring the operations of IRS governance boards.

    2. Establishes enterprise governance best practices and processes to facilitate alignment to IRS strategy with effective decision-making.

Investment Analysis Office

  1. The Investment Analysis Office (IAO) provides a continuous process for assessing the contributions and balance of a collection of capabilities and activities aimed at achieving a strategic goal. The practice of programming resources against the Service’s strategic vision helps create a roadmap that provides IRS senior leadership with insight into resource and dependency identification and potential trade-off opportunities that could occur while making incremental investments to create a desired strategic vision. The IAO is responsible for the Investment Prioritization Process, Corporate Portfolio Monitoring Support, and PPAC Risk Management.

  2. The Director of the Investment Analysis Office reports to the Chief of PPAC.

  3. Investment Prioritization Process

    1. Establishes a transparent and repeatable process that engages IRS senior leadership in determining the key IT and non-IT multi-year investments that support strategic outcomes, and creates a prioritized five-year investment plan.

    2. Manages the strategic investment intake process, reviews and analyzes the investment proposals and prepares the investments for the Senior Executive Team review and prioritization.

    3. Provides the prioritized strategic investment listing to the CFO organization for consideration in preparing the IRS budget submission.

    4. Prepares a prioritized strategic five-year investment plan to inform resource decision-making by leadership.

    5. Issues annual strategic investment prioritization process guidance.

  4. Corporate Portfolio Monitoring Support

    1. Coordinates and manages processes for tracking and monitoring corporate initiatives, as needed.

    2. Incorporates updates from corporate initiatives into the multi-year strategic investment plan to help facilitate resource decision-making by IRS senior leadership.

    3. Coordinates project efficiency reporting and ensures information is shared with the CFO.

  5. Risk Management

    1. Manages the PPAC risk management process and reporting of enterprise and organizational risks to the Office of the Chief Risk Officer.

Audit Coordination

  1. The Office of Audit Coordination (OAC) oversees the full life-cycle of the IRS audit process and elevates audits to IRS Senior Leadership for awareness.

  2. The Director of the Office of Audit Coordination reports to the Chief of PPAC.

  3. The Office of Audit Coordination serves as IRS’s single point of contact for audit activity, providing enterprise oversight and guidance throughout the lifecycle of audits conducted by the Treasury Inspector General for Tax Administration (TIGTA) or the Government Accountability Office (GAO), from the planning stages through the closure of planned corrective actions. (Note: The Chief Financial Officer retains executive responsibility and oversight of the GAO Financial Statement Audit along with its associated body of work.) OAC promotes and upholds a collaborative, professional, and positive partnership with IRS oversight bodies (GAO/TIGTA) that supports their respective roles while working to achieve program and performance improvements across the IRS. Through the use of the Enterprise Audit Database, the OAC provides enterprise audit reports for leadership of audits in the various stages (i.e., audit fieldwork, draft report response phase, awaiting publication, etc.) as well as reporting on the volume of audits impacting the Service. OAC engages with stakeholders to identify emerging areas of sensitivity, common issues and developing trends.

  4. The OAC enhances IRS operations and program performance through early identification of control weaknesses and implementation of corrective actions. While partnering with the IRS business unit audit liaisons, the OAC ensures end-to-end accountability for audit responses and corrective actions identified during an audit.

  5. Ultimately, the OAC strives to position the IRS in a more proactive posture as it relates to program deficiencies and encourage organizations to self-identify program vulnerabilities and proactively identify opportunities for improvement.