PBGC - Office of Inspector General

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PBGC’s Agreed Upon Procedures for Contract Closeout (EVAL-2020-08), issued March 20, 2020

We found that PBGC’s Procurement Department (PD) could have conducted better monitoring of the agreed-upon procedures during the period of performance and did not follow-up on findings from the contract closeout reports. Specifically, PD should have evaluated the status of the contracts included in the Vendor contract closeout pool to verify that such contracts were ready for closeout. By failing to do so, PD incurred unnecessary expenses in having the contractor conduct a premature closeout review. Additionally, PD has not followed-up on the recommendations provided in the final agreed-upon procedures (AUP) reports and has not recouped funds due to overpayments, disallowed direct costs, or de-obligated funds. This inaction exposed PBGC to future liability. Without proper follow-up on the contract closeout AUP reports, PBGC is limited in its ability to prevent, detect, and recover from acquisition risks, such as property loss, financial liability, and overpayments. We identified $293,000 of funds put to better use and $173,000 of questioned costs and we made seven recommendations which PBGC agreed.

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Pension Benefits Guarantee Corporation
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