We hired an Independent Public Accountant (IPA) to examine cost representations in invoices submitted to PBGC. During the fourth quarter of 2007, the IPA applied agreed-upon procedures to assist OIG in evaluating whether costs incurred by a PBGC contractor in the fiscal years ending September 30, 2004, 2005 and 2006 were allowable, reasonable, supported and consistent with contractual provisions.
The IPA's report questions $337,391 in costs related to the following issues:
- No support (Time Logs) of billings for five employees of $125,488;
- Unapproved billings for offsite personnel of $41,843;
- Erroneously billed subcontractor costs of $9,502;
- Unapproved subcontractor costs of $68,883; and
- " Unverified education and experience for employees of $91,675.
The report recommends corrective actions related to identified questioned costs and, if needed, the initiation of necessary collection actions.
Because
this report contains proprietary information, it is not publicly
available.
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