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Release No: 637-08
July 25, 2008

DCAA Announces Review by Inspector General

         The Defense Contract Audit Agency (DCAA) announced today that it has asked the Department of Defense Office of the Inspector General (DoDIG) to review allegations of shortcomings within the agency that oversees contracting issues.
         The request for an independent DoDIG review follows a Government Accountability Office (GAO) report released July 23 that concluded DCAA auditors were improperly hindered in some of their investigations of defense contractors.
         “We take the GAO report very seriously,” said April Stephenson, DCAA director. “It is crucial that we have a clear understanding of any problems associated with our audit effort. We have, therefore, asked the Inspector General to review the issues cited by the GAO to help ensure that we take every step necessary to address any deficiencies.”
         In addition to asking for DoDIG review, DCAA leaders have initiated an agency-wide reinforcement of professional expectations and assembled a team to conduct its own internal assessment.
         “It is imperative that our agency is not only held to the highest professional standards, but also appears to be beyond reproach,” said Stephenson. “The DCAA is committed to supporting any review of our procedures and is prepared to take immediate action to fix any problems found.”
         As stated on its official Web site (http://www.dcaa.mil), the DCAA is responsible for performing all contract audits for the Department of Defense (DoD), and provides accounting and contract advisory services to all DoD components as well as other government agencies. Approximately 35,000 audit reports are issued by the DCAA every year. The GAO report included findings on 13 audits conducted by three specific offices from 2002 to 2007.

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