Contract Audit Followup: Defense Contract Management Agency Santa Ana Office's Actions on Incurred Cost Audits
Abstract
This report addresses the DCMA Santa Ana District Office. DoD Directive 7640.2, "Policy for Follow-up on Contract Audit Reports," February 12, 1988, as amended August 16, 1995, implements OMB Circular A-50. "Audit Followup" and prescribes DoD policies and procedures, including timeframes, for the resolution and disposition of contract audit reports. Incurred cost contract audit reports showing $ 100,000 in cost questioned are required by the directive to be reported and tracked to achieve timely resolution and disposition. Resolution is achieved when the auditor and the contracting officer agree on the actions to be taken on audit report findings or when the contracting officer determines a course of action. Contract audit reports should be resolved within 6 months of issuance and dispositioned, or closed, as soon as possible thereafter. Disposition of the contract audit report occurs when the contractor implements the audit recommendations or the contracting officer's decision, a settlement is reached, or the contracting officer issues a final decision under the Disputes Clause and 90 days elapse without contractor appeal to the ASBCA. Audit reports are overage if not dispositioned within 12 months of issuance. Deviations from the established time periods should be fully justified and documented in the contract file.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 17, 2005
- Accession Number
- ADA435741
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense