TIRNO-94-D-00090 and
TIRNO-00-D-00019, Audit of Incurred Costs
for Fiscal Year 2001
October 2003
Reference
Number: 2004-1C-008
This report has cleared the Treasury Inspector General For
Tax Administration disclosure review process and information determined to be
restricted from public release has been redacted from this document.
October 31, 2003
MEMORANDUM FOR DAVID A. GRANT
DIRECTOR OF PROCUREMENT
INTERNAL REVENUE SERVICE
FROM: Daniel R. Devlin /s/ Daniel R. Devlin
Assistant Inspector General
for Audit (Headquarters Operations and
Exempt Organizations
Programs)
SUBJECT: TIRNO-94-D-00090 and TIRNO-00-D-00019,
Audit of Incurred Costs for Fiscal Year 2001 (Audit #20041C0203)
The
Defense Contract Audit Agency (DCAA) examined the contractor’s February 12,
2002, certified final indirect cost rate proposal and related books and records
for reimbursement of Fiscal Year 2001 incurred costs. The purpose of the examination was to determine the allowability
and allocability of direct and indirect costs and to establish audit-determined
indirect cost rates for July 1, 2000, through June 30, 2001. The proposed rates apply primarily to
flexibly priced contracts.
The
DCAA stated that the contractor’s indirect rates are acceptable as
proposed. Additionally, claimed direct
costs are acceptable and provisionally approved pending final acceptance.
According
to the DCAA, the contractor claims exception from the practices required by the
Cost Accounting Standards Board rules and regulations because the company
considers itself a small business concern.
The
information in this report should not be used for purposes other than those
intended without prior consultation with the Treasury Inspector General for Tax
Administration regarding their applicability.
If you have any questions, please
contact me at (202) 622-8500 or John R. Wright, Director, at (202) 927-7077.
Attachment
NOTICE:
The Office of Inspector General for Tax Administration has
no objection to the release of this report, at the discretion of the
contracting officer, to duly authorized representatives of the contractor.
The contractor information contained in this report is
proprietary information. The
restrictions of 18 U.S.C. § 1905 must be followed in
releasing any information to the public.
This report may not be released without the approval of
this office, except to an agency requesting the report for use in negotiating
or administering a contract with the contractor.
The
TIGTA seal was removed due to its size.