DCAA Audit Shows Errors in Contract Records

June 20, 2016

Pentagon Clerks Entered Wrong Data for Post-Contract Audits Much of the Time

Source: Government Executive, Charles S. Clark, May 19, 2016

The Defense Department’s contract audit follow-up records contained inaccurate data in as many as 100 of 1,000 data fields sampled, the Pentagon’s Office of Inspector General found in a new report.

In 50 of the Defense Contract Audit Agency’s contract follow-up records tested by the watchdog, 41 (82 percent) had errors in one or more data fields, said the report.

Data errors in contract follow-up records “adversely impact DOD management’s ability to rely on Contract Audit Follow-up Overview (CAFU) as a tool for tracking contracting officer actions on DCAA audit reports,” the report said. The frequency of such errors demonstrates the need for both DCAA and the Defense Contract Management Agency to “improve related procedures and internal controls.”

Defense financial components use contract follow-up records to track and manage the actions of contracting officers in response to DCAA audit reports that, in fiscal 2014 alone, resulted in $10.7 billion in questioned costs in proposals from Pentagon contractors. The accuracy of the follow-up reports “is important to ensure reported DCAA audit findings are resolved timely and appropriately, and to correctly report the status of actions taken on the reported findings to Congress,” the IG wrote.  READ MORE….

 Contact your nearest PTAC to learn more about this new report.


Keep up to date follow us on Twitter, LinkedIN or Facebook!

 For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.