Fort Belvoir, Va. –
The DCAA Colorado Springs Branch Office issued an audit report for a Fixed Price proposal regarding military aircraft. The audit team issued an adverse opinion due to the contractor not supporting $20 million of proposed costs and questioning over $700,000. Historically, audits from this contractor resulted in disclaimer of opinions due to the contractor’s inability to support proposed costs. For added complexity, the accounting records are stored in multiple accounting systems due to previous acquisitions and mergers.
The Colorado Springs Branch Office auditors started work to overcome these barriers so they could ensure a comprehensive report. To start, they worked with a DCAA office focused on work with the contractor. The partnership allowed Colorado Springs Branch Office auditors to pull accounting system reports and develop a full understanding of how the system works. Additionally, the audit team performed alternative audit procedures to review price and missing cost analyses, and they worked with technical and Quality specialists to evaluate the audit evidence.
The extra collaborative work helped the Colorado Springs Branch Office provide a full report with useful information for negotiations to the buying command.