Defense Contract Management Agency Actions on Audits of Cost Accounting Standards and Internal Control Systems at DoD Contractors Involved in Iraq Reconstruction Activities.

摘要

We evaluated the actions that Defense Contract Management Agency contracting officers took on audits of cost accounting standards and internal control systems at major defense contractors involved in Iraq reconstruction activities. Our review covered audits of cost accounting standards and internal control systems included in the semiannual reporting periods ending September 30, 2006, through September 30, 2007. DCMA Houston contracting officers did not adequately justify their actions in response to two DCAA audit reports of potential cost accounting standard noncompliances, and the actions cost the Government $1.6 million. A DCMA Pheonix contracting officer also did not adequately justify his decision to maintain his adequate opinion of a major DoD contractor s accounting system in light of significant accounting system internal control weaknesses reported by DCAA. In addition, a DCMA Philadelphia contracting officer failed to adequately coordinate with DCAA when she evaluated the contractor s response to DCAA-reported estimating system deficiencies. DCMA Philadelphia and Houston did not timely process DCAA- reported noncompliances in accordance with FAR 30.605, and did not accurately report contract audit follow-up data. DCMA Philadelphia and Houston contracting officers did not timely resolve or disposition several of the audits, and management has not implemented adequate controls for ensuring an effective contract audit followup function. Finally, DCMA Houston is not evaluating one of its contracting officers on the contract audit follow-up process as DoD Directive 7640.2 required and DoD Instruction 7640.02 requires.