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Contract Compliance Audits

It is OCAST policy to perform audits of contracts executed by the agency for all funded programs.  Audits are conducted following the federal guidelines of generally accepted Government Auditing Standards.

Audit Frequently Asked Questions

  1. Why is OCAST performing an audit of its contracts and research projects?
  2. What is OCAST looking for in an audit?
  3. How are projects and contracts selected to be audited?
  4. How long will an audit take?
  5. Who will likely be involved during the audit process?
  6. What happens if an audit reveals problems?
  7. Does the client have an opportunity to address any concerns or problems noted in the audit?
  8. Is future OCAST funding contingent upon the outcome of an audit?

 

1. Why is OCAST performing an audit of its contracts and research projects?
Top of Audit FAQ
The purpose of the OCAST review process is to demonstrate good stewardship of taxpayer dollars and to ensure the appropriate use of research funds.  OCAST does not intend to create an atmosphere of conflict.  Rather, OCAST intends to partner with the audit client to aid in the strengthening of contract management.
 
2. What is OCAST looking for in an audit?
Top of Audit FAQ
OCAST reviews and compares contractor performance with contract language to ensure compliance with the requirements outlined in the research contract.  OCAST also tests financial transactions, which have been charged to the project under review, to ensure the appropriateness of expenditures reimbursed through the contract.
 
3. How are projects and contracts selected to be audited?
Top of Audit FAQ
OCAST has created a comprehensive process of evaluating the risk of each project awarded in the past two fiscal years.  OCAST randomly selects a percentage of projects within each defined area of risk.  For each project selected for review, OCAST will audit all contracts associated with the project.
 
4. How long will an audit take?
Top of Audit FAQ
It is estimated that a review will likely take four to six weeks from the engagement of the review to the issuance of an audit report. OCAST will make every effort to minimize the inconvenience to the client’s daily operations during the course of the audit.  
 
5. Who will likely be involved during the audit process?
Top of Audit FAQ
The OCAST programs director will send a letter to the project’s contract official in order to engage the audit.  Once the audit is engaged, the contracts compliance officer will coordinate all auditing activities with the contract official.  It is possible that, during the course of the audit, an auditor may confer with the principal investigator and others specifically associated with the research project.
 
6. What happens if an audit reveals problems?
Top of Audit FAQ
The OCAST contracts compliance officer will communicate with the client to discuss any questions or concerns that surface throughout the audit process.
 
7. Does the client have an opportunity to address any concerns or problems noted in the audit?
Top of Audit FAQ
At the conclusion of the review, we will create an audit report to note any findings encountered during the review.  The client will be provided an opportunity to specifically address the findings, to explain the circumstances surrounding the findings, and to spell out the action to be taken to correct any noted situations of non-compliance.
 
8. Is future OCAST funding contingent upon the outcome of an audit?
Top of Audit FAQ
We will work with the client to determine appropriate corrective action to take to resolve many situations of non-compliance. However, if appropriate corrections cannot be made and non-compliance still exists OCAST does reserve the right to discontinue funding to the client and/or Principal Investigator.

 

Last Modified on 06/04/2010
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