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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Public Health Service Contract Pre-Award Audits Issued During Fiscal Year 1991," (A-02-92-02518)

December 30, 1992


Complete Text of Report is available in PDF format (865 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.

EXECUTIVE SUMMARY:

This final report summarizes 50 contract pre-award audit reports issued by the Office of Audit Services in Fiscal Year (FY) 1991. A majority of the proposals we reviewed contained overstated and unsupported projected costs of approximately $85 million. The Public Health Service (PHS) contains to sustain a significant amount of the findings of overstated or otherwise unreasonable costs. Where proposals were eventually awarded, the PHS concurred in about $4.8 million of recommended audit adjustments and reduced funding $4.8 million of recommended audit adjustments and reduced funding by about $12.6 million because of costs set aside (costs which were undocumented) by our audits. Further, regarding proposals in our review which were not funded by PHS, there were $8 million in audit adjustments and about questionable proposed charges were justified by additional documentation or other evidence or allowability or reasonableness.