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.