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092693 1 (1969-08-19)

handle is hein.gao/gaobacwoh0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 CIVIL DIVISION AUG 1 9 1969 Dear Mr. Thrower: The General Accounting Office has completed a review of selected activities of the Internal Revenue Servicess (IRS), Data Center (DC), Detroit, Michigan. The review was limited because not all tecords pertinent to the areas of our inquiry were made available to us. How- ever, our review showed that there are certain matters which in our opinion, warrant consideration at the IRS national office level. We found that there is an apparent low productive-time utilization of computers, a possibility for eliminating, consolidating or revising some of the tables utilized in the management information system, and a possibility of substantial savings in computer time through the use of microfilm instead of hardcopy (paper reports) for computer output. The resolution of these matters might result in significant improvements in the computer operations at DC, therefore, we believe that IRS should consider them prior to acquiring new third generation computers for DC. The purpose of this letter is to obtain your views and comments on these matters. The DC was established in Detroit in July 1965. Its function is to perform all computer operations not directly related to the auto- matic data tax returns processing system. It is a service organiza- tion, and, as such, receives work requests from, and provides services to, various IRS functional areas. The Management Information Division (MID), located in Washington, D.C., provides line supervision over the DC and acts as a liaison between it and other organizational units of IRS. The IRS budget for fiscal year 1970 includes about $1 million for the lease of third generation computers for DC for a period of about 5 months. We undeistand that the acquisition of this equipment, valued at about $6.5 million, was 3ustified primarily on the premise that the present computers are inadequate to handle current and planned workloads. Low productive-time utilization of computers There is an apparent low productive-time utilization of computers at DC. The DC production rate for fiscal year 1969 was 40 percent as

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