Defense contracting: DOD Initiative to address audit backlog shows promise, but additional management attention needed to close aging contr

By U.S. Government Accountability Office

"Why GAO Did This StudyDOD has a large volume of contractsthat have not been closed on time.Closing a contract includes tasks suchas verifying that the goods andservices were provided and makingfinal payment to the contractor. Closingcontracts within required time framescan limit the government's exposure tocertain financial risks. One reason whysome contracts are not being closed isthe large backlog of incurred costaudits that must first be completed.These audits, conducted by DCAA, ensure that the costs contractors haveincurred are permissible undergovernment regulations.The Senate Armed ServicesCommittee report accompanying theNational Defense Authorization Act forFiscal Year 2012 directed GAO toreview the criteria and procedures forconducting incurred cost audits, amongother things. In response, GAOassessed (1) efforts to reduce thebacklog of incurred cost audits and (2)the challenges DOD faces inaddressing the contract closeoutbacklog. GAO reviewed DCAA'spolicies and procedures for incurredcost audits; analyzed data on the auditand contract closeout backlogs; andinterviewed officials in the militarydepartments and agencies.What GAO RecommendsGAO is recommending that DCAAdevelop a plan to assess its incurredcost audit initiative; that DCMAimprove data on over-age contracts;and that the military departmentsdevelop contract closeout data and

• Format: Paperback
• Language: English
• ISBN: 1974239349
• ISBN13: 9781974239344
• Release Date: January 1
• Publisher: Createspace Independent Publishing Platform
• Length: 42 Pages
• Weight: 0.27 lbs.
• Dimensions: 0.1" x 8.5" x 11.0"