WebBased Contract Audit FollowUp CAFU

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Web-Based Contract Audit Follow-Up
(CAFU) (Abridged) Presented By Brian
Gerst, CAFU Monitor Date April 12, 2006
Rev. 1.1 Apr 11, 2006
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Objective
Objective To provide an overview of CAFU for the
AGBF team. If further detail is required,
please refer to the sources listed in the
Etools Help slide.
Websters defines Abridged as, 1. To reduce
the length of condense, 2. To diminish, 3. To
curtail.
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History

• DoD Directive 7640.2 requires that all audits be
  tracked
• 1980s 1990 Various Manual Tracking Systems
• 1995 Mainframe based CAFU database hosted on
  same computer as MOCAS
• MOCAS-like software and interface
• Relational database linked specific codes to
  MOCAS (e.g. ACO, ORG)
• 2000 Projected closure/ replacement of MOCAS
  and the modernization/single signon initiatives
  drove development of new CAFU system
• 2002 Web-based CAFU system developed
• September 30, 2003 First Semiannual Report with
  Web-based system
• 2003 2004 Etools version 2.0
• January 2005 Etools version 3.0

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Big Picture
Audits are reported semi-annually to the DoD
Inspector General (IG) to determine the amount of
questioned cost / funds that are at risk of loss
or have been sustained. Ultimately, the
information is reported to Congress.
DCAA Management Information System (DMIS)
DCMA CAFU System
March 31 September 30 Source 6.3.4
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Etools
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Same eTools Look Feel
Title bar Menu bar
Example of My Work
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Same eTools Look Feel
Example of My Workgroup
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Same eTools Look Feel
Search
Example of Audits
Can Sort These Columns
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Same eTools Look Feel
Example of Reports
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DCAA Format of Audit Numbers
Sample 6311-2005K19500006S1
BWI Sub office
Supplemental Audit
Sequence
E (CAS)
Year 2005
Cost Impact
Some DCAA offices may use different letters to
indicate the team assigned.
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Audit Types
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Reportable Non-Reportable Audits
Source DoDD 7640.2 6.3.1.1 6.3.1.2 6.3.1.
3 6.3.2.
Non-Reportable audits are identified as
Reports covering preaward proposals forward
pricing labor, overhead, and
other advance rate proposals progress payments
preaward surveys proposals for change orders or
modifications assist audits and closing
statements are not to be reported.
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Definitions
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HOME Page

• Home is the first page that the user will
  see when they access CAFU. It displays a brief
  description about CAFU, current features, and
  announcements.

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Pipeline Meter
Pipeline Meter An audit report goes through
several positions with different
fields available to be edited. These positions
are referred to as the pipeline or
pipeline status. The pipeline positions are
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Workflow
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Pipeline Position
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Pipeline Other Features
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WORKFLOW Assign
Assign This page/screen allows only a CAFU
Monitor to use/ assign an audit report record
to an ACO.
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WORKFLOW Plan
Plan At this stage the audit report has
been assigned to the appropriate ACO. This page
allows the ACO to enter the Resolution Target
Date and the Disposition Target Date.

• Common Actions
• View Contractor Profile
• Auditor Name
• Auditor Phone Number
• Input Remarks
• Request Correction
• Save and Submit.
• Reset
• Cancel

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WORKFLOW Resolve

• The resolve stage requires the ACO to input the
  Actual resolution date.

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WORKFLOW Resolve

• Resolution Actual Date
• - Enter the date. Source 6.3.4.2
• - Resolution must be supported by written
  documentation. Source 6.4.1
• - Documentation is the prenegotiation position
  (PNOM). Source 6.4.1
• - Enter zero (0) in the sustained field when a
  report is superseded,
• replaced or incorporated into a new
  report. Source 6.3.4.2
• If applicable
• - ACO Opinion.
• - Updated Amount Questioned / Avoidance.
  Source 6.3.4.2

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WORKFLOWDisposition or Deferral

• Disposition or Deferral This stage of the
  pipeline allows an ACO to
  disposition or defer audit report action.
• Disposition Actual Date
• Enter Disposition Actual Date
• OR
• Deferred Action Date
• Reason to Defer
• Litigation Courts Source E2.1.9
• Criminal Investigation
• Sustained Amount
• Enter the amount, if zero (0), enter zero (0).
  DO NOT leave blank. Source Semi-Annual Report
  Instructions.
• If applicable
• Updated Amount Questioned / Avoidance
• ACO Opinion

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WORKFLOW Disposition or Defer
Update Remarks before submitting.
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WORKFLOWDisposition after Deferral

• Disposition after Deferral At this stage in the
  pipeline, an audit report record can only be
  dispositioned.
• Enter Disposition Actual Date

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WORKFLOWDisposition after Defer
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WORKFLOW Forwarded (Archived)
Key Slide

• Forward refers to the memo that the ACO sends to
  DCAA signifying that he/she has completed their
  follow-up work. This means that the ACO has
  taken all action on an audit report.
• This action actually closes the audit report once
  the Forward date is entered the audit is no
  longer accessible for editing from the
  application. Audit reports in this stage can
  only be viewed.
• In accordance with DoDD 7640.2 Para. 6.5
  Notification of Final Disposition of Contract
  Audit Reports .. instructionscontracting officer
  shall promptly prepare a memorandum covering the
  disposition of all reports. ..
• A copy of the memorandum shall be provided
  to the cognizant contract auditor when an audit
  report is closed.

• For example, you will send a cover letter to
  DCAA along with your
• PNM, etc
• Important Update the remarks section before
  you enter the date for
• Forward and submit.

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WORKFLOWForward (Send Document)
Enter the remarks before submitting
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What You Need To Know
Audit Report Date
Disposition / Forward
Resolution
If beyond 12 months the audit is overage, unless
an exception applies.
6 Months
12 Months
Resolution DoD Directive 7640.2 requires that
resolution occur within six (6) months from the
date of the audit report as mandated by Public
Law (PL 96-527). Disposition DoD Directive
7640.2 requires that Disposition occur within
twelve (12) months from the date of the audit
report. Any audit that exceeds 12 months is
listed as overage on the CAFU 2.1.99.5 MMR charts.
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Update Remarks Only
Key Slide Updating remarks is very easy.
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Edit
Cancel Changes
Change Auditor Name Phone Number
Change Sustained Amount, Updated Cost Audited
Amount
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Edit - (cont)
Adverse proposal is not acceptable as a basis
for negotiation of a price. E2.1.1.
Input Remarks Request Correction
Save and Submit, Reset
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Milestones

• Milestones are intermediate steps in the
  Follow-Up process associated with an audit. This
  feature is provided in CAFU to help COs set
  intermediate goals with target dates, remarks,
  actual, and revised dates. The milestone feature
  can help the workgroup manage the audits more
  effectively and improve performance.

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Milestone Screen - Entry

• Access the Audit Milestones page by clicking on
  the audit report number from My Work to access
  Update Milestones Add Milestones page.
• Adding Milestones
• ACOs can add milestones to an audit currently
  assigned to you. To add a milestone, click on Add
  Milestone from the audit milestone page
  (instructions above).
• Select the type of milestone, the target date,
  and the remarks. The type of milestone you can
  add depends on the pipeline position of the audit.

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Corrections

• Only the CMO Monitor can make corrections.

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Recent Questions

• Question 1 What is the criteria for
  dispositioning noncompliance audit? Is it when
  we issue determination, receive updated D/S
  Revision, receive GDM/cost impact? Answer
  highlighted in green below.
• Question 2 Regarding finals, if local issues
  are complete, when can the audit be closed?
  Answer highlighted in purple below.
• The criteria for dispositioning noncompliance
  audit is as follows
• 6.1.1 Dispositioning Cost Accounting Standards
  (CAS) issues The ACO dispositions the CAS
  noncompliance cost impact audits by one of the
  methods described below in accordance with FAR
  15.406-3, DFARS 215.406-3
• The contractor implements the audit
  recommendations or the ACO's decision.
• The ACO negotiates a settlement with the
  contractor and a contractual document has been
  executed.
• The ACO issues a final decision pursuant to the
  Disputes Clause and the contractor has exhausted
  its allowable
• time for appeal
• CAS Noncompliance reports, when the audit
  report on the related cost impact statement is
  received by the ACO,
• when required.
• For divisional final overhead audit reports,
  when the ACO has negotiated all local issues with
  the contractor and a
• written agreement detailing the results of the
  negotiations has been signed by both parties and
  distribution has been
• made to the Defense Contract Audit Agency
  (DCAA).

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Updated Directive
Future
The DoD IG is currently re-writing the DoD
Directive 7640.20 and will provide further
guidance concerning this subject area. The
following excerpt may be implemented The DoD IG
has required that DCAA enter the incurred cost
audit report into the CAFU Tracking system that
are what we refer to as audit determined rates,
meaning that DCAA has settled the final indirect
rates for the ACO. Therefore the ACO must close
this audits out of the CAFU system after putting
in Resolution and Disposition dates. The ACO
must also enter the sustained amount.  If the
amount to be entered that was sustained is not
clearly stated within the audit report, then
telephone the DCAA auditor for the correct amount
to enter and any other questions that you may
have regarding the Resolution date. (In many
cases you will use the same date and same
questioned amount on the record.) You can use
the date the audit report was received or a date
after that (within reason and the CAFU 1 year
limit) for the Disposition date for this
record.  
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Etools Help

• Etools Training
• Log on to DCMA eTools CAFU Home Page
• DCMA Guidebook
• DoDD Regulation 7640.2
• CAFU Users Manual 3.0
• Help Frequently Asked Questions

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IF YOU NEED HELP

• Telephone the Help Desk 1-800-576-3262
• Contact your CMO monitor
• For assistance regarding this presentation
• Mr. Brian Gerst, CMO CAFU Monitor.
• Telephone [phone]
• E-mail brian.gerst_at_dcma.mil

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QUESTIONS
?
Always refer to the CAFU Manual 3.0 located on
the CAFU homepage.