MRD 08-PPD-020(R) - Audit Guidance on Audits of Contractor Cost Data Reports (CCDRs)

DEFENSE CONTRACT AUDIT AGENCY DEPARTMENT OF DEFENSE8725 JOHN J. KINGMAN ROAD, SUITE 2135 FORT BELVOIR, VA 22060-6219 I N RE PLY REF E R T O PPD 730.5.15.1 June 19, 2008 08-PPD-020(R) MEMORANDUM FOR REGIONAL DIRECTORS, DCAA DIRECTOR, FIELD DETACHMENT, DCAA SUBJECT: Audit Guidance on Audits of Contractor Cost Data Reports (CCDRs) Summary This audit guidance is being issued to provide additional audit procedures and emphasize existing guidance (CAM 11-408) to address recent issues raised by the Director of the Defense Cost and Resource Center (DCARC) regarding CCDR audits. Auditors should be responsive to DCARC requests for audit which, in the future, will likely include specific areas for review, such as verifying certain actual costs to the contractor’s books and records. CAM 11-408 will be expanded to incorporate the guidance detailed below. Background The CCDR is relied upon by DoD to develop independent cost estimates that are the basis for Departmental budget requests and key milestone decisions on major defense acquisition programs. As a result, it is critical that any known deficiencies and inaccuracies or noncompliances in contractor-reported data are appropriately reported and considered in assessing the overall adequacy of the contractor report and related policies and procedures. Upon receipt of the CCDR from the contractor, DCARC performs a validation for numerical and clerical accuracy and consistency with the Cost Analysis ...