Audit Reports

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Closeout and Payment Processes for Cost-Reimbursable Contracts

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We found DOT was not properly administering closeout and payment of cost-reimbursable contracts. We also found that DOT did not close contracts in a timely manner, resulting in funds remaining obligated on completed contracts for as long as 12 years. As a result, DOT had little assurance that contractors actually incurred the $294 million on the 448 contracts that were not subjected to independent audits and internal desk audits. We excluded FAA because it uses a different acquisition system from the rest of DOT and will be audited separately.