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Budget and Spending: Cost Accounting Standards

  Premium   Download PDF Now (13 pages)
Report Type Reports and Testimonies
Report Date March 7, 1984
Report No. 123579
Subject
Summary:

GAO discussed the reinstitution of the Cost Accounting Standards Board function and whether the Department of Defense (DOD) is the proper body to carry out this function. The Board became inactive in September 1980, due to the lack of fiscal year 1981 appropriations. GAO believes that, as long as there are negotiated national defense contracts, there is a continuing need for an administrative body to attend to cost accounting standard matters. GAO supports reinstituting the Board, but does not favor such a function in DOD because: (1) satisfying the need for the Board to insulate itself from outside influences would be problematic; and (2) difficulties would arise in attempting to ensure uniform and consistent standards. GAO believes that to fulfill the need for an administering body two options are available: (1) introduce legislation to empower the Comptroller General to perform duties and functions similar to those of the Board; and (2) require each agency to report annually to Congress the reasons why any standard was not followed.

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