Report on Audit of Compliance With Cost Accounting Standard 408, Accounting for Costs of Compensated Personal Absence

 

July 2003

 

Reference Number:  2003-1C-148

 

 

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.

 

July 25, 2003

 

 

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 408, Accounting for Costs of Compensated Personal Absence (Audit # 200310002.037)

 

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 408, Accounting for Costs of Compensated Personal Absence, and any applicable FAR Part 31 requirements during December 2002 through February 2003.  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 considers the contractor’s accounting system to be generally adequate for accumulating and reporting costs on Federal Government contracts.  According to the DCAA, the contractor had complied, in all material respects, with the requirements of CAS 408 during December 2002 through February 2003. 

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) 622-8500 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 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.

 

The TIGTA seal was removed due to its size.