Review of National Government Services' Final Administrative Cost Proposal for Fiscal Year 2007

Administrative costs reported by National Government Services on its Final Administrative Cost Proposal for October 1, 2006, through September 30, 2007 were generally reasonable, allowable, and allocable and in compliance with the Federal Acquisition Regulation and other applicable criteria. However, National Government Services reported costs totaling $50,000 for fringe benefits, electronic data processing equipment, outside professional services, telephone and telegraph, postage and express, and other costs that are unallowable because they were not adequately supported. We attribute the unallowable costs to weaknesses in National Government Services' internal controls for assuring that costs reported on its Final Administrative Cost Proposal are fully supported with adequate documentation.