Report on Follow-Up Audit of the Billing System
May 2004
Reference
Number: 2004-1C-103
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.
May 20, 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 Follow-Up Audit of the Billing
System (Audit #20041C0228)
The
Defense Contract Audit Agency (DCAA) re-examined the contractor Civil Group’s
billing system as of April 9, 2004, to assure their system of billing controls
is adequate to provide billed costs that are reasonable, compliant with
applicable laws and regulations, and subject to applicable financial control
systems. The DCAA also evaluated the
Civil Group’s compliance with the billing system’s internal control
requirements. According to the DCAA,
the purpose of this examination was to follow-up on the contractor’s corrective
actions taken in response to a previously issued audit report, dated November
22, 2002.
The
DCAA indicated that compliance tests on the Civil Group’s billing system were
performed prior to an April 3, 2004, merger with another contractor. Therefore, the sampling universe did not
include the acquired contractor’s business units. Accordingly, the results of the audit are qualified to the extent
that performing compliance tests on these billings may have resulted in billing
system deficiencies.
The
DCAA stated that, except for the qualification noted above, the billing system
and related internal control policies and procedures of the Civil Group are
adequate. During the course of the
follow-up examination, the Civil Group adequately corrected the deficiencies
cited in the original billing system audit.
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.