Johnson Space Center Procurement: Controls Over Payments to Contractors Should Be Strengthened
IMTEC-93-2
Published: Oct 23, 1992. Publicly Released: Oct 23, 1992.
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Highlights
GAO reviewed the National Aeronautics and Space Administration's (NASA) contract management practices, focusing on the Lyndon B. Johnson Space Center's (JSC) internal controls over the management of information processing contracts, grants, and purchase orders.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| National Aeronautics and Space Administration | To provide better assurance that controls are sufficient to prevent waste, abuse, and mismanagement, the Administrator, NASA, should require JSC to systematically assess its internal control system for payments made under cost-reimbursement contracts, and develop appropriate procedures to link payment to contractors with acceptance of goods and services actually ordered and delivered. |
Closed – Implemented
NASA concurred with the report's recommendation and assessed the vulnerability of its internal controls over cost reimbursement contracts. NASA also implemented plans to increase coordination with DCAA to ensure that contractors' billing systems are audited as required and that any additional audit work needed to ensure that JSC is getting what it paid for are scheduled and completed. NASA also entered into agreements with DCAA and DCMC to provide audits to centers as needed on an hourly reimbursable rate. NASA and JSC consider this recommendation closed as of April 2, 1993.
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Topics
Accounting proceduresComputer contractsAccounting standardsComputer fraudComputer services contractsContract administrationContract oversightContractor paymentsCost reimbursement contractsFederal agency accounting systemsFederal grantsInternal controlsInvoicesProcurement regulations