Arizona Department of Revenue-Department is Hindered by Ineffective Information Technology (IT) Leadership Processes and Should Prepare for the Planned Replacement of Its Primary IT System

The Arizona Department of Revenue (Department) relies on its information technology (IT) to carry out its business functions, including processing tax returns, auditing taxpayers, and collecting delinquent taxes. However, the Department’s use of IT is hindered by ineffective IT leadership, specifically IT governance and management processes, for making and carrying out IT decisions. The Department’s primary IT system has many problems, and the Department has not taken advantage of various other IT capabilities that could improve its operations. Although the Department has initiated efforts to improve its IT governance processes, it should continue these efforts and establish effective IT management processes. The Department also plans to replace its primary IT system, possibly beginning in fiscal year 2017, but it needs to do more to prepare for implementing a new system.