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 the
PBGC contractor in the fiscal years ending September 30, 2001,
2002, 2003, 2005 and 2006 were allowable, reasonable, supported
and consistent with contractual provisions.
The IPA report questions $533,081 in costs related to the
following issues:
- No support for labor hour billings of $52,380;
- Unsigned timesheets by employee and supervisor of $81,667;
- Erroneously billed government holidays of $9,248;
- Erroneously billed subcontractor costs of $29,142;
- Unapproved subcontractor costs of $95,142; and
- Unverified education and experience for all employees of $265,502.
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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