TIRNO-95-D-00062 and
TIRNO-00-D-00011, Audit of Incurred Costs For Fiscal Year 2001
October 2003
Reference
Number: 2004-1C-006
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.
October 27, 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: TIRNO-95-D-00062 and TIRNO-00-D-00011,
Audit of Incurred Costs for Fiscal Year 2001 (Audit #20041C0201)
The
Defense Contract Audit Agency (DCAA) examined the contractor’s Information
Technology Segment June 10, 2002, certified final indirect cost rate proposal
and related books and records for reimbursement of Fiscal Year 2001 incurred
costs. The purpose of the examination
was to determine the allowability and allocability of direct and indirect costs
and to establish audit-determined indirect cost rates for December 29, 2000,
through December 27, 2001. The proposed
rates apply primarily to flexibly priced contracts.
The
DCAA opined that the contractor’s indirect rates are acceptable as adjusted by
its examination. Additionally, the
claimed direct costs are provisionally approved pending final acceptance. The DCAA qualified its audit report because
the results of the assist audits for the subcontract costs had not been
received.
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.