Report on Audit of Cost Accounting Standard 412, Composition and Measurement of Pension Cost, and Cost Accounting Standard 413, Adjustment and Allocation of Pension Cost
Reference Number: 2004-1C-123
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 15, 2004
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 Cost Accounting Standard 412, Composition and Measurement of Pension Cost, and Cost Accounting Standard 413, Adjustment and Allocation of Pension Cost (Audit #2004C0233)
The Defense Contract Audit Agency (DCAA) performed an examination of the contractor’s June 12, 2003, certified final indirect rate proposal and related books and records for reimbursement of Fiscal Year (FY) 2002 incurred pension cost. The purpose of the examination was to determine the allowability and allocability of pension cost and recommend contracting officer-determined pension cost for the period January 1, 2002, through December 31, 2002. The examination also determined whether the contractor complied with the requirements of Cost Accounting Standard (CAS) 412, Composition and Measurement of Pension Cost, and CAS 413, Adjustment and Allocation of Pension Cost, and any applicable Federal Acquisition Regulation Part 31 requirements during the period January 1, 2002, through December 31, 2002. The proposed price applies primarily to flexibly priced contracts.
The DCAA considers the contractor’s accounting system and related internal controls adequate for Federal Government accounting purposes. According to the DCAA, the contractor complied, in all material aspects, with the requirements of CAS 412 and CAS 413 during the period January 1, 2002, through December 31, 2002.
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.
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.