United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-12-09 monographic deposited born digital 14 p. GA 1.13:NSIAD-95-41 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-41 P0b002ee18037608d f:ns95041 DGPO 2010-08-12 2011-03-28 GAOREPORTS-NSIAD-95-41 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-95-41 NSIAD-95-41 Overhead costs Accounting procedures Contract administration Questionable payments Legal fees Lobbying activities Department of Defense contractors Contract costs Cost accounting standards compliance Aerospace contracts Letter Report NSIAD GAO reviewed the overhead cost submissions of the Rockwell Corporation's Rocketdyne Division--a major NASA contractor--and found that about $222,000 of the costs in Rocketdyne's fiscal year 1990 and 1992 overhead submissions were unallowable. This amount represents about five percent of the $4.8 million in overhead costs reviewed and 2.6 percent of the $8.6 million charged in total to the reviewed accounts. These percentages of unallowable costs cannot be generalized to the total overhead charges of $8.66 million because GAO reviewed only those accounts that it believed were more susceptible to unallowable charges. Rocketdyne included the unallowable costs in its overhead submissions mainly because accounting personnel did not have accurate instructions on allowable membership fees and because of weaknesses in Rockwell and Rocketdyne procedures for handling outside legal services. Rocketdyne would have been reimbursed for the fiscal year 1990 unallowable costs in part because the Defense Contract Audit Agency (DCAA) did not review the company's legal expenses and did not follow up on information it did obtain on membership fees. At the time of GAO's review, DCAA had not audited Rocketdyne's fiscal year 1992 submission. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-41/html/GAOREPORTS-NSIAD-95-41.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-41/pdf/GAOREPORTS-NSIAD-95-41.pdf GAO/NSIAD-95-41 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-41 Letter Report GAO/NSIAD-95-41; Overhead Costs: Unallowable Costs Charged by Rockwell Corporation, Rocketdyne Division; Overhead costs Accounting procedures Contract administration Questionable payments Legal fees Lobbying activities Department of Defense contractors Contract costs Cost accounting standards compliance Aerospace contracts