Internal Audit Follow-up HB

1.   Purpose

The purpose of this handbook is to provide policies and procedures for use by agency management when responding to and implementing recommendations in audit reports issued by the Office of Inspector General (OIG) and the U.S. Government Accountability Office (GAO).

2.   Cancellation

ADM 2030.2C is canceled.

3.   Nature of revision

Revisions incorporate updated agency audit follow-up procedures to be used when responding to GAO and terminology changes pertaining to OIG contract (pre-award and post-award) reviews in accordance with the Yellow Book standards.   

4.   Scope

The order concerns actions taken before, during and after an audit report is issued by GAO and after an audit or contract report is issued by the OIG.  The order describes the major responsibilities of the agency Audit Follow-up Official and the organizations and officials engaged in audit resolution and follow-up, and the relationships among them.

5.   Background

The Internal Control and Audit Division (BEI), was established by ADM 5440.166, dated October 16, 1979, for controlling and monitoring the review and implementation of GAO and OIG internal audit reports.  On October 1, 1981, BEI assumed lead responsibility for tracking the resolution and follow-up of OIG contract reports.  BEI reports to the Administrator and Deputy Administrator, through the Office of the Chief Financial Officer (B), on the status of management decisions and implementation of final actions.

6.   Authorities

 a.  GAO Act of 1980, 42 U.S.C.   3523, et seq.

 b.  Legislative Reorganization Act of 1970, Section 236, Pub. L. 91-510

 c.  Supplemental Appropriations and Rescission Act of 1980, 42 U.S.C.  1751 et seq.

  d.  OMB Circular A-50 (Revised, September 29, 1982), Audit Follow-up

  e.  Federal Claims Collection Act of 1966, 31 U.S.C.  951-955

  f.   Federal Claims Collection Standards, 31 C.F.R. Parts 900-904

  g.  Contract Dispute Act of 1978, 41 U.S.C.  601 et seq.

  h.  Federal Acquisition Regulation 15-808, Price Negotiation Memorandum
                                                                                                                                                    
  i.   Federal Acquisition Regulation 15-804-7, Defective Cost or Pricing Data

  j.   OMB Circular A-19, Legislative Coordination and Clearance

  k.  Inspector General Act Amendments of 1988, 5 U.S.C. Appx.  2 et seq.

  l.  Debt Collection Act of 1982, as amended, 5 U.S.C.  2 et seq.

  m. OMB Circular A-129, Revised 11/2000, Managing Federal Credit Program

  n.  National Defense Authorization Act of 1996, Section 810, 104 Pub. L. 106, 5 U.S.C. Appx.  5 nt.

7.  Policies, definitions, responsibilities, and procedures

Attached are policies, definitions, responsibilities, and procedures for responding to reports issued by the U.S. Government Accountability Office (GAO) and the Office of Inspector General (OIG), and resolving and implementing management's responses to the reports.  Chapter 1 contains policies and responsibilities for the audit resolution and follow-up system.  Chapter 2 concerns GAO audits and related procedures.  Chapter 3 gives procedures related to OIG internal audit reports.  Chapter 4 addresses the handling of OIG contract  pre-award and post-award reports.  Chapter 5 concerns the implementation, follow-up, and tracking of all audit and contract reports.  Chapter 6 contains procedures for the development of the Administrators Semiannual Report to the Congress.  Appendix A contains timelines and templates for responding to GAO.  Appendix B contains terms and definitions.

8. Implementing actions

The Heads of Services and Staff Offices, Regional Managerial Officials, the Inspector General, and the Deputy Administrator shall take all action necessary to implement this order.