Clarification Needed on What Constitutes an Advisory and Assistance Services Contract

EXECUTIVE SUMMARY:

This final audit report presents the results of our review of contracted advisory and assistance services (AAS) as required by Section 1114(b) of Title 31 of the United States Code. Our review disclosed that the Health Care Financing Administration did not report at least $2.3 million in AAS acquisitions to the Department and the Federal Procurement Data System. These inaccuracies were due to the lack of a clear definition of what constitutes an AAS obligation which causes the operational components to apply their own interpretation of the Executive Office of Management and Budget Circular A-120 criteria.

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