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Highlights

In response to a legislative requirement, GAO reviewed a certified public accountant's audits of the financial statements of the Semiconductor Manufacturing Technology Consortium (SEMATECH), a consortium of 14 U.S. semiconductor manufacturers and the Department of Defense (DOD).

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Recommendations

Matter for Congressional Consideration

Matter Status Comments
If federal participation in SEMATECH is reauthorized, Congress may wish to take into account, in determining the appropriate level of federal funding, the indirect cost reimbursements that some SEMATECH members receive for their SEMATECH contributions. Congress also may wish to consider this issue for any other jointly funded consortium that includes federal contractors or grantees.
Closed - Implemented
S. 1327 was introduced which addresses cost reimbursement for members of the critical technology consortia. The GAO report entitled Federal Research: SEMATECH's Technological Progress and Proposed R&D Program (GAO/RCED-92-223BR) surveyed all 14 SEMATECH member companies. It found that member company efforts to seek reimbursement for their SEMATECH contributions was not a major problem.

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