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GAO reviewed the Department of Transportation's (DOT) contract management and oversight, focusing on what management controls were in place at DOT and its operating administrations. GAO noted that: (1) DOT operating administrations have relied primarily on Defense Contract Audit Agency (DCAA) audits to assess the appropriateness of contract charges; (2) DOT did not have a centralized system to track requests for DCAA audits, audit findings, and the actions taken to resolve audit recommendations; (3) DOT did not notify the Federal Aviation Administration (FAA) and the Coast Guard when funds budgeted for contract audits were reprogrammed for other purposes; (4) FAA and the Coast Guard have failed to request audits needed to close and deobligate funds on some completed contracts; (5) the DOT backlog of unfilled requests for DCAA audits grew by over 70 percent between 1989 and 1992; and (6) DOT and DCAA agreed that DCAA would provide and DOT would fund sufficient audit resources to complete the audits in the backlog by the end of fiscal year 1993.

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