Exhibit 4.1.23-1
(07-01-2007)
Base Inventory Analysis
This exhibit is an excel spreadsheet used to prepare a base inventory analysis. A base inventory analysis is a tool used to
ensure that the industry inventory mix, by return type and activity code, will deliver planned staff years and returns.
The source of the information provided in this exhibit is A-CIS and AIMS Table 37.
The format of the base inventory analysis is provided in four sections: One for individuals, corporations (Non CIC), flow-thru
entities (Partnerships and S Corporations), and training.
This exhibit contains various column headings. The definition of columns contained in the spreadsheet are as follows:
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Column A:Lists the Activity Code
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Column B: Planned direct examination staff years (DESY)
Note:
The planned time is broken down by each activity code excluding training which is shown separately.
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Column C:Year to date DESY accomplishments from Table 37. This amount does not include training returns. The source of information
is Page 19 of Table 37 excluding training returns, Page 17 and flow-thru’s on Page 15.
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Columns D - G: Rates
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Column D:Planned Industry Case rates from Compliance Workplan( (DESY*2000)/planned returns)
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Column E: Actual rates from Table.37 or ACIS Closed Case Database. It includes Industry Cases excluding training returns (Project Code
0204). The last 12 months should be used to determine rates.
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Column F: This is the variance between planned and actual rate. A positive number is rate delivery in excess of plan. A negative number
is rate delivery below plan rate.
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Column G:Planned returns per Industry Compliance Plan excluding training returns
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Column H:Returns closed Year to date – Source ACIS Closed Case Database filtered for Industry Case only, excluding training returns
(Project Code 0204)
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Columns I - K: Cycle Time
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Column I:The Examination Cycle days from status 12 to status >79, extracted from ACIS Closed Case Database.
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Column J :: This amount is cycle days converted to months
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Column K: The turnover rate is calculated by taking the Column J and dividing it by 12 to compute the number of times inventory turns
over each year
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Columns L - M: Inventory
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Column L:The base inventory is planned returns divided by turnover rate. This is the number of cases needed in inventory at all times
to deliver returns using planned rates.
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Column M:Open Status includes returns in status 12 through 79 excluding suspense cases, and those awaiting survey. The information
is extracted from the A-CIS open case database.
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Columns N - O:Variance
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Column N: The planned returns is the difference between Status 12 open inventory (column M) and base inventory (column L) using planned
rates. A negative number indicates a shortage of inventory to meet planned returns using planned rates. A positive number
indicates excess inventory
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Column O: Returns for DESY’s is the difference between Status 12 open inventory and base inventory required to accomplished planned
DESY’s, using actual rates and adjusted for months remaining in the year. A negative number indicates a shortage of inventory
to meet planned staff years. a positive number indicates excess inventory.
Note:
This number is subject to distortion, especially early in year, by a significant variance between planned rate and actual
rate. A variance of zero is optimal.
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