MENTORPROTG CONFERENCE March 16, 2005

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MENTOR-PROTÉGÉ CONFERENCEMarch 16, 2005

• THE AUDIT ACTIVITY

Presented by Mary Ann Yenchus, CPA Senior
Auditor Tampa Bay Branch Office
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THE AUDIT ACTIVITYPurpose

• Verify the reimbursable agreement costs reported
  on the DoD Mentor-Protégé Agreement Semi-Annual
  Report
• Determine whether they constitute allowable costs
  in accordance with the applicable requirements of
  the Federal Acquisition Regulation (FAR), Defense
  FAR Supplement (DFARS), and the terms of the
  contract

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THE AUDIT ACTIVITYPrimary Review Steps

• Verify reported expenditures to the public
  vouchers and accounting records
• Reconcile direct costs billed to the general
  ledger
• Verify the indirect rates used to the approved
  provisional billing rates

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THE AUDIT ACTIVITYAdditional Review Steps

• Review the adequacy of the contractors billing
  system covering the accumulation and billing of
  mentor-protégé costs
• Perform testing to determine if the practices
  used to accumulate and bill costs are consistent
  with the contractors established accounting
  practices and terms of the advance agreement (if
  any)

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THE AUDIT ACTIVITYAdditional Review Steps

• Verify approval for incidentals given by
  Component Directors, SADBU
• Verify total of incidentals does not exceed ten
  percent of the estimated cost of the agreement
• Verify total amount reimbursed to the mentor in a
  fiscal year does not exceed one million dollars
  without written justification to the cognizant
  Component Director, SADBU

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THE AUDIT ACTIVITYConsiderations in the Audit

• ALLOWABILTY
• Authorized by DFARS I-106(d)development
  assistance and I-109(c)incidentals
• ALLOCABILITY
• Incurred specifically for the contract
• REASONABLENESS

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THE AUDIT ACTIVITY

• Questions?