Report on Audit of
Compliance With Cost Accounting Standard 418, Allocation of Direct and Indirect
Costs
April 2004
Reference
Number: 2004-1C-091
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.
April 15, 2004
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: Report on Audit of Compliance With Cost
Accounting Standard 418, Allocation of Direct and Indirect Costs (Audit #20041C0225)
The
Defense Contract Audit Agency (DCAA) performed an examination regarding the
contractor’s compliance with the Cost Accounting Standards (CAS) and the
Federal Acquisition Regulation (FAR).
The purpose of the examination was to determine whether the contractor
had complied with the requirements of CAS 418, Allocation of Direct and
Indirect Costs, and any applicable FAR Part 31 requirements during the period
of January 1, 2004, through March 22, 2004.
By performing Federal Government contracts covered by Government
regulations, the contractor asserts that its accounting practices comply with
the requirements of the CAS.
The
DCAA indicated that the contractor converted to a PeopleSoft-based accounting
system in January 2004. The DCAA is not
aware of any inadequacies concerning this new system’s accumulating, reporting,
and billing of costs on Federal Government contracts. According to the DCAA, the contractor had complied, in all
material respects, with the requirements of CAS 418 during the period of
January 1, 2004, through March 22, 2004.
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.