Sandia National Laboratories has designated the Contract Audit Department as an independent appraisal function. The department is responsible for the audit of supplier contracts and subcontracts that support the Laboratories’ mission. Contract Audit also provides accounting and financial services in connection with the negotiation, administration, and settlement of costs for contracts placed by Sandia Procurement.
The tabs below contain information and templates associated with audit processes for use by Contractors, Sandia Contracting Representatives (SCRs), Sandia Delegated Representatives (SDRs) and Requesters.
Forms can also be found at the bottom of the forms tab on the Contractor Bidder Information Policies Page.
For a better understanding of audit material, please view our Glossary of Terms.
Audit Engagement Letter
This letter is sent to the contractor by the Contract Audit Department prior to performing an audit and explains the scope and objectives of the audit engagement. The letter lists the contract(s) that will be
audited and asks that the contractor acknowledge (1) that contract(s) listed represent all of the contractor’s auditable Sandia contracts and (2) that the contractor understands the scope and objectives of the
audit engagement.
Management Representation Letter
This letter is obtained from the highest level of the audited entity. The official who signs the Management Representation Letter is the person who, in the auditor's view, is responsible for and knowledgeable, directly or through others, about the matters in the representation letter. Written representations from management ordinarily confirm oral representations given to the auditor, indicate and document the continuing appropriateness of those representations, and reduce the possibility of misunderstanding. The letter includes representations about financial information, financial statements, internal controls, indirect rates, related party transactions, conflict of interest, and compliance with laws, regulations and contract terms and conditions. A management representation letter is required by General Accepted Auditing Standards and General Accepted Government Auditing Standards
Electronic Cost Claim (ECC): An Electronic Cost Claim is the document prepared and provided by the contractor to Sandia Contract Audit in preparation for an audit. It is used to compare and reconcile previously billed and paid amounts that are shown in Sandia’s accounting system. It also provides the contractor with an additional opportunity to review their previous billings to ensure there have not been omissions or errors. The ECC is the basis for the statistical audit sample selections made by the auditor. These should be submitted within 90 days of a contractor’s fiscal year end.
ECC- General Information
ECC -Time & Materials Labor Hours InstructionsECC-Time & Materials/Labor-Hours Template
ECC-Cost Reimbursable Instructions
ECC-Cost Reimbursable Template
Electronic Cost Proposal (ECP): An Electronic Cost Proposal is the document prepared and provided to the Sandia Contracting Representative (SCR) by a contractor who is bidding on a proposed contract. The Cost Proposal contains the proposed total charges or costs necessary to perform the activities being considered in the proposed contract. A preaward audit may be performed based on regulations and/or at the request of the SCR.
ECP Instructions
ECP-Time & Materials/Labor Hours Template
ECP-CostReimbursable/Fixed Price Template
SDR – Time & Materials/ Labor Hours Tip Sheet A guideline provided for the Sandia Delegated Representative (SDR) when reviewing invoices associated with Time and Materials and/or Labor Hours invoices. Tips include what to look for in regard to labor billing rates and labor categories, travel, materials, equipment and other direct costs (ODCs) to ensure that the contractor is billing per the contract terms and conditions and applicable regulations
SDR – Cost Reimbursable/Fixed Price Tip Sheet A guideline provided for the Sandia Delegated Representative (SDR) when reviewing invoices associated with Cost Reimbursable and/or Firm-Fixed Price invoices. Guidelines describe what the SDR might expect to see on an invoice and what the SDR might want to consider when reviewing costs or milestone payments to ensure the contractor is billing per the contract terms and conditions and applicable regulations.
SCR – Preaward Audit Tip Sheet A preaward audit guideline provided for the Sandia Contracting Representative (SCR). Tips include what issues need to be resolved prior to requesting a preaward audit including exceptions to the contract terms and conditions and common cost proposal problems. Also provided are tips on how to submit a preaward audit request.
Contractors – Contract Records and Audit FindingsTip Sheet An information sheet for the contractor, which describes the types of records (supporting documentation) that the contractor might be asked to provide to the auditor during the course of an audit. Also included is a list describing some common audit findings.
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Last updated: October 17, 2007