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Because of concerns over the effects of inflation on the research dollar and the propriety of costs charged to Federal funds by grantees and contractors, the effectiveness of the National Science Foundation's activities for ensuring that responsible officials act on audit reports assessing its operations and the expenditure of funds by contractors and grantees was reviewed. The Audit Office of the Office of Audit and Oversight is responsible for followup on reports which it issues to ensure that findings and recommendations are adequately considered and that corrective actions have been taken.

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