Collection of Nonrecurring Costs From DoD Contractors for Commercial Sales of Defense Articles
Abstract
The objectives of the audit were to determine whether nonrecurring cost recoupment charges were collected from DoD contractors who sell defense articles to commercial customers. We also evaluated the effectiveness of internal controls related to collecting charges for commercial sales of defense articles. We reviewed the collections of nonrecurring cost recoupment charges for commercial sales of defense articles at four contractor sites. A list of the four contractors is provided in Appendix A. We limited the number of sites visited because Defense Acquisition Circular 88-5, effective May 1, 1989, changed the procedures for collecting nonrecurring cost recoupment charges on commercial sales of defense articles. Additional audit work was not warranted at this time, since the effects of the changes will not be evident until time is allowed for implementation of the procedures. We verified nonrecurring cost payments for commercial sales identified by the contractors. At two of the contractor sites visited, the payments verified were for commercial sales made from the date the current nonrecurring cost recoupment charges came into effect until the time of our audit. At one location,
Document Details
- Document Type
- Technical Report
- Publication Date
- May 29, 1990
- Accession Number
- ADA382324
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense