Adequacy of HEW's Audit of Swine Flu Vaccine Manufacturing Costs
HRD-78-163: Published: Sep 19, 1978. Publicly Released: Sep 19, 1978.
- Full Report:
A review was conducted of the Department of Health, Education, and Welfare's (HEW) audit of swine flu vaccine manufacturing costs. Final procedures used by HEW to audit the costs claimed by Merck, Sharp, and Dohme, Wyeth Laboratories, and Merrell-National Laboratories were adequate. During the review, proposals were made that HEW perform additional audit work to provide a better basis for reaching its audit conclusions or to obtain information with which the auditors could render an opinion on costs they formerly considered unresolved. Additional efforts by the auditors resulted in an adequate audit. Judgments on final contract prices to be negotiated with manufacturers were left to HEW, but a proposal was made to the contracting officer that imputed interest be computed after final costs are negotiated. The HEW audit of the Parke-Davis contract was delayed because of a contract dispute, but HEW has requested and received cost data from the company pending resolution of the dispute and has started its audit.