MRD 07-PAC-037(R) - Audit Alert on Application of Non-DoD Agency FAR Supplements to DCAA Audits

DEFENSE CONTRACT AUDIT AGENCY DEPARTMENT OF DEFENSE8725 JOHN J. KINGMAN ROAD, SUITE 2135 FORT BELVOIR, VA 22060-6219 IN REPLY REFER TO PAC 730.3.B.01/2008-01 November 21, 2007 07-PAC-037(R) MEMORANDUM FOR REGIONAL DIRECTORS, DCAA DIRECTOR, FIELD DETACHMENT, DCAA SUBJECT: Audit Alert on the Application of Non-DoD Agency FAR Supplements to DCAA Audits This audit alert emphasizes the importance for auditors to ensure that all applicable non-DoD Agency FAR supplements are considered when conducting audits covering non-DoD contracts. In addition, as provided at CAM 10-210.3, auditors are required to specifically identify each of the Agency FAR supplements, which are applicable to their audits in the scope section of the audit report. While all agencies are generally required to follow the FAR Part 31 cost principles, agencies will often place supplemental or additional cost allowability requirements upon certain selected costs. For example, the Department of Energy has supplemental regulations addressing Costs Associated with Whistle Blower Actions contained within paragraph (h) of the Costs related to legal and other proceedings cost principle at DEAR 931.205-47. The Department of Energy, Department of Homeland Security, Department of Justice, Department of Transportation, National Aeronautics and Space Administration, and the National Science Foundation all have additional or supplemental allowability provisions associated with pre-contract ...