the money we have available to fulfil our obligations to the American people. In reports issued since fiscal 1992, the General Accounting Office has issued fifty-nine recommendations that if acted on would improve its record keeping and information systems. Today we will hear how the IRS is planning to act on these recommendations, and when they will be fully implemented. Today, we will review the IRS' plans for improvement in developing accurate financial information and adequate internal controls that will ensure that errors are either prevented, or detected quickly. We will also assess the ability of the Internal Revenue Service's information system to produce reliable information. This includes the weaknesses in internal control policies and procedures, such as failure to reconcile fund balances, that have increased the risk of fraud and diminished the reliability of the information provided to Congress and others. Today's hearing includes several witnesses commenting on the IRS' financial management problems. Appearing today are: Gene L. Dodaro, Assistant Comptroller General, Accounting and Information Management Division, General Accounting Office. Steven O. App, Deputy Chief Financial Officer, Department of the Treasury. Anthony Musick, Chief Financial Officer of the Internal Revenue Service. We thank you all for joining us and look forward to your testimony. Subcommittees of the House Government Reform and Oversight Committee swear in all witnesses for hearings. I ask each of you who will be testifying to stand and raise your right hand for the oath. [Administer Oath] Mr. HORN. And as you know the tradition, the subcommittees of the House Government Reform and Oversight Committee do swear in all witnesses for hearings, and I would ask each of you who will be testifying to stand and raise your right hands for the oath. [Witnesses sworn.) Mr. HORN. All of the five witnesses have affirmed, and the clerk will note that. And as you also know, since you are regulars, our practice is to include your written testimony in the hearing record after each of you is introduced, and we would appreciate having you orally summarize your written statement in 10 minutes or so. We are not going to hold you rigidly to that, we want you to feel you have made the case, and I am not going to be offended if you go over. But on the other hand, we do want to get the show on the road so there can be questioning. We have a vote under way now. So we are going to recess this committee. Now that you are sworn in, you can tell the truth to each other and we will recess for about 15 minutes and reassemble here, by the time we get over and vote, at roughly 5 minutes of 11. [Recess.) Mr. HORN. Let's come to order. The ranking member has arrived and she would like her statement put in the record, and we are delighted to do it. [The prepared statement of Hon. Carolyn B. Maloney follows:) CAROLYN B. MALONEY 14TH DISTRICT, NEW YORK DISTRICT OFFICES 110 EAST 59TH STREET 2ND FLOOR NEW YORK, NY 10022 (212) 832-6531 1504 LONGWORTH BUILDING WASHINGTON, DC 20515-3214 (2021 225-7944 COMMITTEES BANKING AND FINANCIAL O 28-11 ASTORIA BOULEVAAD ASTORIA, NY 11102 (718) 932-1804 Congress of the United States SERVICES 0 GOVERNMENT REFORM AND OVERSIGHT 619 LOAIMER STREET BROOKLYN, NY 11211 (718) 349-1260 House of Representatives Rep. Carolyn B. Maloney -- Opening Statement Hearing on Oversight of Internal Revenue Service Financial Management- Has There Been Any Improvement? September 19, 1996 Thank you Mr. Chairman for holding this important hearing. I share your concern with One of the requirements of the 1990 CFO Act is that the General Accounting Office audit So there is a sense of deja vu surrounding today's testimony. Given the short time frame I look forward to both the GAO's presentation and the IRS/Treasury response. The GAO (over) PRINTED ON RECYCLED PAPER The IRS claims to be on the move toward significant improvement on these and many other accounting deficiencies. The subcommittee is eager to learn about this progress.. I am also concerned with problems the GAO has found with the IRS's Accounts Receivable. These represent money owed to the federal government -- namely to the taxpayer which have not been collected. I have a long-standing interest in this issue, and have worked with Chairman Horn in successfully enacting legislation on the collection of non-tax delinquencies. That will certainly be a subject for future hearings by this subcommittee. I look forward to hearing our distinguished witnesses, and I thank the Chairman for his continuing vigilance on these issues. 44-755 - 97 - 2 |