Hotline Complaint Concerning Inadequate Audit Services Provided by an Audit Team in the Defense Contract Audit Agency Mid-Atlantic Region

摘要

We reviewed a DoD Hotline complaint alleging that a Defense Contract Audit Agency (DCAA) audit team in the Mid-Atlantic Region failed to provide adequate audit services. We substantiated two of three allegations listed in the complaint. We substantiated that the DCAA audit team provided inadequate audit assistance in closing contracts by not reviewing final vouchers in a timely manner; and inappropriately canceled its review of a progress payment based on direction from another contracting officer who did not have the authority to cancel it. We did not substantiate a third allegation that the DCAA audit team failed to perform a requested estimating system audit. DCAA management should ensure timely completion of final voucher reviews by the audit team; meet with the Defense Contract Management Agency field office at least monthly to discuss the status of the audit team's final voucher reviews; reassess its priorities on an agency-wide basis to ensure that auditors complete final voucher reviews in sufficient time to close contracts within Federal Acquisition Regulation timeframes; consider appropriate administrative action for the improper cancellation of a progress payment review; and develop procedures covering the preparation of audit leads. We recommend that the Director, DCMA, consider appropriate administrative action for a contracting official who requested that DCAA cancel an audit without having such authority. The management comments were responsive to all recommendations. Of the nine recommendations addressed to DCAA, the Director, DCAA concurred with 6 and did not concur with three. The Director, DCMA concurred with all three recommendations addressed to DCMA.