DATE: June 16, 2022

SUBJECT: Request for Contract Audit Services

  1. PURPOSE. This Directive establishes the Treasury Office of Inspector General (TOIG) as the Departmental focal point for obtaining contract audit services for Department of the Treasury (Treasury) bureaus, and the Departmental Offices (DO).
  2. SCOPE. This Directive applies to all Treasury bureaus, regardless of the source of their funds, and to DO, subject to the exclusions in paragraph 3, below. Contract audit services covered under this directive include the following: requests for proposals for all procurements, including task and delivery orders under existing contracts and agreements for Financial audits, Attestation engagements, Performance audits and certain non-audit services from non-federal auditors.
  3. EXCLUSIONS. This Directive does not apply to the Internal Revenue Service (IRS), the Treasury Inspector General for Tax Administration, any Special Inspector General legislatively established within the Department of the Treasury, or any program or operation within the oversight or jurisdiction of any of the foregoing entities.
  4. POLICY. It is the policy of Treasury that bureaus and DO utilize the contract auditing services provided by the TOIG. When the TOIG is not able to perform the requested contract audit services due to timing, lack of personnel resources, etc., the TOIG will obtain contract audit services from the Defense Contract Audit Agency (DCAA) or other sources, as deemed appropriate. At the discretion of the TOIG, the TOIG may delegate authority to DO and the bureaus to request and pay for specific audits when circumstances warrant.
    1. The Treasury Inspector General is responsible for:
      1. 1) receiving and reviewing all requests for contract audit services;
      2. 2) performing contract audits or, as necessary, obtaining the services of DCAA, other Federal agencies or non-Federal audit sources to perform such audits or, at its discretion, delegating authority to the bureaus or DO to request and pay for specific audits when circumstances warrant; and
      3. 3) establishing billing and payment procedures to assure prompt payment for audit support services provided from sources other than the TOIG audit staff.
    2. The Assistant Secretary for Management and Heads of Bureaus shall ensure that the procedures in this Directive are implemented in the internal directives systems in their respective bureaus or DO.
    1. Bureau or DO requests for contract audit services shall be submitted in writing before issuing a solicitation for a contract to the TOIG Assistant Inspector General for Audit by the chief procurement officer (or designee) or by the contracting officer of the bureau.
    2. The requests shall provide all information and specific details regarding the requested work, including due dates.
    3. Contract audits will be performed by TOIG auditors or, if necessary, the TOIG will obtain, in compliance with the Department of the Treasury Acquisition Regulation and Department of the Treasury Acquisition Procedures, as referred to in Treasury Directive (TD) 76-01, the required contract audit services from non-Treasury sources, including DCAA, other agencies or non-Federal auditors. The TOIG may, at its discretion, delegate to bureaus or DO the authority to request and pay for specific audits when circumstances warrant. In these circumstances, the TOIG will continue to retain oversight responsibilities of the contract audits performed unless delegated to the bureau or DO.
    1. Procurement Planning. Annual procurement plans shall be submitted by the bureaus or DO to the TOIG Assistant Inspector General for Audit. These plans shall include anticipated contract audit requirements for the respective bureaus or DO.
    2. Receipt of Audit Request/Confirmation of Audit Activity. The TOIG shall respond in writing to bureau or DO audit requests within five working days after receiving the request. The TOIG's response will acknowledge receipt of the audit request and provide information on who will perform the audit and the estimated start and completion dates.
    3. Audit Reports. Audit reports from non-TOIG auditors shall be received directly by the OIG and reviewed by the TOIG staff. All reports, including DCAA reports, shall be forwarded to the bureau within three working days of approval by the TOIG.
    4. Price Negotiation Memorandum. The bureaus or DO shall provide the TOIG with a copy of the price negotiation memorandum for all contract audit reports. This memorandum should clearly address resolution of the audit findings.
    1. "Inspector General Act of 1978, as amended." 5 USC App. 3.
    2. TD 40-01, “Responsibilities of and to the Inspector General.”
    3. Treasury Order (TO) 114-01, "Office of Inspector General."
    4. Federal Acquisition Regulation Section 15.305, “Proposal evaluation” and Section 15.404-3, “Subcontractor Pricing Consideration.”
    5. TD 76-01, “Acquisition Regulation and Acquisition Procedures”
  9. CANCELLATION. Treasury Directive 76-06, “Request for Contract Audit Services,” dated October 5, 1992, is superseded.
  10. OFFICE OF PRIMARY INTEREST. Treasury Office of Inspector General.


Richard K. Delmar
Deputy Inspector General