COMPTROLLER'S MEMORANDUM NO. 01 (1997-98)
SUBJECT: DOCUMENTATION FOR COST REIMBURSEMENT CONTRACTS
As part of our continuing reengineering efforts, we have revised our policy regarding documentation for cost reimbursement contracts. Effective immediately, documentation (e.g., copies of canceled checks, payroll registers, etc.) for cost reimbursement contracts will no longer be required to be submitted to this office with each payment request. In lieu of submission of the detailed documentation, agencies are encouraged to submit an itemized invoice by expenditure category (e.g., salaries and benefits, expenses, capital outlay). Each agency will be required to maintain the documentation supporting cost reimbursement invoices and to make it available for audit purposes. Agencies are to continue to require the contractors to follow the cost reimbursement documentation standards provided in Comptroller's Memorandum No. 10 (1991-92). By submission of the payment request, the agency will have certified that the detailed documentation to support each item on the invoice is on file at the agency. Our review of detailed documentation will be performed on a post-audit basis, using judgment sampling. After payment of the invoice, we will notify the agency of the expenditures selected for the documentation review. Additionally, we will advise the agency of whether the documentation should be submitted to this office or the documentation will be reviewed by our staff during agency site visits.
If you have any questions regarding this memorandum, please contact the Bureau of Auditing at 410-9194, Suncom 210-9194.