SECTION D.1 STATEMENT OF OBJECTIVES

Section D: Contract Documents, Exhibits, or Attachments

HSFEMS-09-R-0011

SECTION D.1 – STATEMENT OF OBJECTIVES

Statement of Objectives

IA/MDC-GSM Contract Auditing

Purpose Provide audit services for Maintenance and Deactivation Contractors (MDC) (9) and Group Site Maintenance Contractors (GSM) (5) listed on enclosure 1.

Scope

Ensure taxpayer funds were spent when and where appropriate. Provide the Acquisition Office the documentation necessary to support any discrepancies found in overages paid to the contractors, based on the results of this audit. Determine whether taxpayer funds were spent in accordance with contracts and applicable laws and regulations. Perform the audit in accordance with the following standards:

· Generally Accepted Government Auditing Standards-GAO Government Auditing Standards (Yellow Book)

· Generally Accepted Auditing Standards-American Institute of Certified Public Accountants

Period and Place of Performance

Period of performance is anticipated to be one year from date of award and the place is the Biloxi Recovery Office, Biloxi, MS.

Background

The Government Accountability Office issued a report in November 2007 #GAO-08-106 entitled Ineffective FEMA Oversight of Housing Maintenance Contracts in Mississippi resulted in Millions of Dollars of Potential Fraud, which recommended auditing of the MDC and GSM contracts located in Mississippi.

Objectives

· Audit all paid invoices of MDC contracts, which could include supporting documents for each monthly billing for the year 1 MDC contractors’ comprises of approximately 3,000 to 5,000 documents each and supporting documents for each monthly billing for the year 2 MDC contractors’ comprises of approximately 5,000 to 10,000 documents each. The supporting documents for the GSM contractors comprises of approximately 1,000 to 3,000 total.

· Determine whether 100% of all invoices for the audit period were proper.

· Provide auditor support in meetings between FEMA staff and Contractors on the audit results.

· Analyze the support data provided with each invoice to determine if there are any unsubstantiated, improper or duplicate billings.

Reports

· Provide a final report for each MDC and GSM contract no later than 3 weeks after each contract audit is concluded which shall contain documents identified as supporting contractor overpayment(s) flagged/identified as support documentation to the COTR and Contract Specialist. Reports must meet Government Auditing Standards, July 2007 Revision.

Sources

Data will be obtained from the following sources:

1. All approved funding documents for each contract.

2. Recorded payments in the financial system

3. Mississippi Acquisition section contract files to include base contracts, task orders, and modifications

4. Mississippi IA Section MDC COTR data bases and files, to include hardcopy and electronic supporting documentation

Constraints

The invoice review work will be completed at the FEMA Mississippi Recovery Office in Biloxi, MS. Original Files will remain at the MSRO; copies of the electronic files may be manipulated and analyzed off-site.

All files and reports either electronic and or hard copy are proprietary to the government and shall not be disclosed in any fashion to any outside or foreign agency or entity.

Additional Requirements Ability to meet Homeland Security Presidential Directive (HSPD-12) Requirements for Contractors, Security Clearance:

A.

All new contractor staff must have a current background investigation at FEMA.

B.

FBI fingerprint check by FEMA Personnel Security.

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