Author :
Publisher :
ISBN 13 :
Total Pages : 26 pages
Book Rating : 4.:/5 (227 download)
Book Synopsis Settlement of Contractor Incurred Indirect Cost Audits by :
Download or read book Settlement of Contractor Incurred Indirect Cost Audits written by and published by . This book was released on 1998 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This audit was performed as a follow-on to our evaluation of Defense Contract Audit Agency Audits of Indirect Costs at Major Contractors." The objective of that review was to determine the adequacy of Defense Contract Audit Agency (DCAA) audits of indirect cost claims at major contractors. During the 12-month period ending March 31, 1997, DCAA questioned costs of $1.5 billion dollars. The amount of questioned costs sustained was $.6 billion, a sustention rate of only 40 percent. When contracting officers do not sustain costs that are expressly unallowable under the Federal Acquisition Regulation cost principles, contractors may be reimbursed for unallowable costs. In addition, the penalties and interest on the unallowable costs would not be assessed or collected. Audit Objectives. Our overall objective was to evaluate whether contracting officers were effectively using contract audit reports to negotiate final indirect expense rates and assess penalties when appropriate. We also evaluated whether contracting officers were adequately documenting the basis for their rationale when they disagreed with contract audit reports on the allowability of costs or the assessment of penalties. Audit Results. For the 45 audit reports we reviewed, contracting officers made effective use of DCAA audit reports and sustained the audit recommendations on expressly unallowable questioned costs when negotiating final indirect expense rates. Contracting officers adequately documented the basis for rationale when there was disagreement with contract audit reports on the allowability of costs or the assessment of penalties.
