The Defense Department’s management and auditing sub-agencies need to clarify their roles and improve the timeliness of their examinations of contractor accounting, estimating and purchasing systems, a watchdog found.
“DoD currently lacks a mechanism based on relevant and reliable information, such as the number of [contractor business system] reviews that are outstanding, the risk level assigned to those systems, and the resources available to conduct such reviews,” the Government Accountability Office wrote in a report released on February 8th.
Citing directives from Congress over the past decade, GAO reviewed data from the Defense Contract Management Agency and the Defense Contract Audit Agency and found that the DCAA, for example, conducted few business system audits in the past six years, due, in part, to the need for it to reduce its backlog on completing incurred cost audits.
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