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TREASURY DIRECTIVE 76-06

DATE:  October 5, 1992
 
SUBJECT:    Request for Contract Audit Services
 
 
1.    PURPOSE.  This directive establishes the Office of Inspector General (OIG) as the Departmental focal point for obtaining contract audit services for all Treasury bureaus and the Departmental Offices.
 
2.    SCOPE.  This directive applies to all bureaus, regardless of the source of their funds, and to the Departmental Offices (DO). Contract audit services covered under this directive include the following: proposals; incurred cost/close-out; preaward (accounting system) surveys; contractor's purchasing system; cost accounting standards disclosure statements; equitable adjustment claims; termination settlements; and defective pricing.
 
3.    POLICY.  It is the policy of the Department of the Treasury that bureaus and DO utilize the contract auditing services provided by the OIG. When the OIG is not able to perform the requested contract audit services due to timing, lack of personnel resources, etc., the OIG will obtain contract audit services from the Defense Contract Audit Agency (DCAA) or other sources, as deemed appropriate. At the discretion of the OIG, the OIG may delegate authority to DO and the bureaus to request and pay for specific audits when circumstances warrant.
 
4.    RESPONSIBILITIES.
 
      a.    The Inspector General is responsible for:
 
            (1)  receiving and reviewing all requests for contract audit services;
 
            (2)  performing contract audits or, as necessary, obtaining the services of DCAA, other Federal agencies or non-Federal audit sources to perform such audits or, at its discretion, delegating authority to the bureaus to request and pay for specific audits when circumstances warrant; and
 
            (3)  establishing billing and payment procedures to assure prompt payment for audit support services provided from sources other than the OIG audit staff.
 
      b.    The Deputy Assistant Secretary (Administration) and Heads of Bureaus shall ensure that the procedures in this directive are implemented in the internal directives systems in their respective bureaus.
 
5.    REQUESTING CONTRACT AUDIT SERVICES.
 
      a.    Bureau requests for contract audit services shall be submitted in writing to the Director, Technical Services Audit Program Group, OIG, by the chief procurement officer (or designee) or by the contracting officer of the bureau.
 
      b.    The requests shall provide all information and specific details regarding the requested work, including due dates.
 
      c.    Treasury Department Form (TD F) 70-06.10, "Request for Contract Audit Services," (Attachment 1) and if necessary, TD F 70-06.10a, "Subcontractor Information," (Attachment 2) shall be completed and submitted to the OIG by a transmittal memorandum. Offeror's proposals, contractor claims and Government technical reports should be submitted with the request.
 
      d.    Contract audits will be performed by OIG auditors or, if necessary, the OIG will obtain, in compliance with the Treasury Acquisition/Procurement Regulation, the required contract audit services from non-Treasury sources, including DCAA, other agencies or non-Federal auditors. The OIG may, at its discretion, delegate to bureaus the authority to request and pay for specific audits when circumstances warrant. In these circumstances, the OIG will continue to retain oversight responsibilities of the contract audits performed.
 
6.    PROCEDURES.
 
      a.    Procurement Planning.  Annual procurement plans shall be submitted by the bureaus to the Director, Technical Services Audit Program Group. These plans shall include anticipated contract audit requirements for the respective bureaus. The OIG will request quarterly updates to the annual plan.
 
      b.    Receipt of Audit Request/Confirmation of Audit Activity.  The OIG shall respond in writing to bureau audit requests within five working days after receiving the request. The OIG's response will acknowledge receipt of the audit request and provide information on who will perform the audit and the estimated start and completion dates.
 
      c.    Audit Reports.  Audit reports from non-OIG auditors shall be received directly by the OIG and reviewed by the OIG staff. All reports, including DCAA reports, shall be forwarded to the bureau within three working days of receipt by the OIG.
 
      d.    Price Negotiation Memorandum.  The bureaus shall provide the OIG with a copy of the price negotiation memorandum for all contract audit reports. This memorandum should clearly address resolution of the audit findings.
 
7.    SUPPLY OF FORMS.
 
      a.    Departmental Offices.  TD F 70-06.10 and TD F 70-06.10a may be obtained from the Clerk's Office.
 
      b.    Bureaus.  Copies of TD F 70-06.10 and TD F 70-06.10a may be obtained by submitting a printing requisition to the Office of Information Resources Management, DO.
 
8.    AUTHORITIES.
 
      a.    "Inspector General Act of 1978, as amended." 5 U.S.C. App. 3, section 1.
 
      b.    Treasury Order 114-01, "Office of Inspector General."
 
      c.    FAR Section 15.805, "Proposal Analysis."
 
      d.    FAR Section 15.806, "Subcontractor Pricing Considerations."
 
     e.    Treasury Acquisition/Procurement Regulation (TAPR), dated July 31, 1992, viz. TAPR Subpart 1042.1 and Section 1015.805.
 
9.    OFFICE OF PRIMARY INTEREST.  Office of Inspector General.
 
 
                                    /S/
                                    Donald E. Kirkendall
                                    Inspector General
 
 
Attachments
Attachment 1.  Request for Contract Audit Services (click on title to view attachment)
Attachment 2.  Subcontractor Information (click on title to view attachment)
 

 
 
Last Updated: 1/9/2012 9:42 AM