IRS Strengthens Financial Systems: How Internal Controls Boost Financial Confidence Year-Round

Francis welcomes Dawn Simpson, Director of Financial Management and Assurance at the Government Accountability Office (GAO), to discuss the IRS's notable improvements in internal controls and the reliability of its financial data.

Dawn outlines how the IRS addressed 21 prior-year deficiencies in information systems, leading to the removal of a previously reported significant deficiency. She explains the key areas of progress — particularly in access controls and configuration management — and why these enhancements matter not only for accurate year-end financial statements but also for real-time confidence in financial data throughout the fiscal year.

She also offers insights into the ongoing nature of GAO’s audit work — highlighting how it’s common to resolve past issues while uncovering new ones — and stresses the critical role of manual monitoring in tandem with automated controls. One standout recommendation: agencies must ensure the data they extract from financial systems truly reflects their intended policies, such as depreciation calculations.

Find links to Dawn’s work on IRS financial management and more details about upcoming events and episodes at FedGovToday.com. 

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