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National Defense: Oversight of Contractor Pension Costs Could Be Improved

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Report Type Reports and Testimonies
Report Date June 23, 1986
Report No. NSIAD-86-85
Subject
Summary:

GAO assessed the adequacy of the Department of Defense's (DOD) audits of contract pension costs. DOD relies on the Defense Contract Audit Agency (DCAA) and the Defense Contract Administration Services (DCAS) to monitor such costs.

GAO found that: (1) while the combined DCAA and DCAS efforts have resulted in adequate audit coverage of defense contractors' pension costs, the agencies have performed independent reviews covering the same contractors without coordinating their efforts; (2) DOD policies require DCAA and DCAS to coordinate their pension audits; (3) during its review, DCAA and DCAS regions were attempting to improve coordination; and (4) DCAA and DCAS need to improve their monitoring of unallowable costs resulting from contractors' delays in funding their pension plans.

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