DCAA gets its own bad review
By
Nick Wakeman
The Defense Department inspector general has criticized the Defense Contract Audit Agency for poor supervision and not meeting standards in how it conducts its reviews of government contracts.
The Defense Contract Audit Agency got a bit of a slap from the Defense Department’s inspector general.
DCAA audits are the bane of many contractors existence because they are seen as nitpicking and slow. It takes years for some audits to be closed. One executive told me that he has audits just now being closed from 2007.
The inspector general looked at 50 cases from fiscal 2010, and found deficiencies in 37 of them; in fact, the IG is recommending that some reports be rescinded, or have supplemental information added to them.
Among the findings were non-compliance with audit standards in areas such as professional judgment, independence, competence and quality controls and assurance. Each gets is own section in the report.
To their credit, DCAA took corrective actions in 2009, such as revising training curriculums and requiring more training for the audit staff. It also has revamped audit programs and guidance.
The IG said it would evaluate those changes in a future review.
Other areas under fire in the report include planning, communications, evidence and documentation, all of which were found lacking to varying degrees.
One criticism that likely won’t surprise executives around the industry is the assignment of inexperienced auditors to complex engagements. The IG also said that the majority of cases lacked proper supervision.
The IG wants DCAA to continue to improve training and supervision, and to look at processes and procedures.
How soon that has an impact in the field is anyone’s guess.