This report has cleared the Treasury Inspector General for Tax Administration disclosure review process and information determine to be restricted from public release has been redacted from this document.

April 24, 2001

MEMORANDUM FOR DAVID A. GRANT

FROM: Pamela J. Gardiner /s/ Pamela J. Gardiner

SUBJECT: Audit of Selected Relocation Costs TIRNO-99-D-00001

In response to your request, the Defense Contract Audit Agency (DCAA) audited selected relocation costs incurred by the contractor during the Fiscal Years 1999 and 2000. The purpose of the audit was to verify the selected relocation amounts billed under the contract.

The DCAA audited a sample of $346,381 in relocation costs and disclosed a total of $4,194 of questioned costs. The disallowed cost elements included $4,169 of unsupported costs and $25 of unallowable costs.

The information in this report should not be used for purposes other than that intended without prior consultation with the Treasury Inspector General for Tax Administration regarding its applicability.

If you have any questions, please contact me at (202) 622-6510, or Maurice S. Moody, Associate Inspector General for Audit (Headquarters Operations and Exempt Organizations Programs), at (202) 622-8500.

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 USC 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.