Audit of Adequacy and Compliance of Disclosure Statement Revision 13, Effective January 1, 2003


October 2003


Reference Number:  2004-1C-007



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




                                         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:     Audit of Adequacy and Compliance of Disclosure Statement, Revision 13, Effective January 1, 2003 (Audit #20041C0202)


The Defense Contract Audit Agency (DCAA) examined the contractor’s revised disclosure statement, dated June 24, 2003, and additional changes submitted on September 12, 2003.  The purpose of the examination was to determine whether the contractor’s revised disclosure statement, Revision 13, dated September 12, 2003, adequately describes the cost accounting practices that the contractor proposes to use in performing Federal Government contracts and whether the revised practices comply with applicable Cost Accounting Standards (CAS) and Federal Acquisition Regulation (FAR) Part 31.  The DCAA also evaluated the contractor’s consistency of revised cost accounting practices with actual practices.

The DCAA disclosed that the disclosure statement revision adequately describes the contractor’s revised cost accounting practices.  Additionally, the practices comply with applicable CAS and FAR Part 31 and are consistent with the contractor’s actual practices.

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 you may call John R. Wright, Director, at (202) 927-7077.







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.