The Defense Contract Audit Agency Â has issued new guidelinesÂ for reporting fraud found during contract audits.
In thisÂ Feb. 9 memo first reported by the Center for Public Integrity, DCAAâ€™s assistant director for operations, Karen Cash, said if an auditor finds potential fraud– such as repeated over billing, false labor charges, improper transfers or bribesâ€”the auditor can refer those cases to the Defense Criminal Investigative Service, even if the auditor cannot prove those questioned costs are fraudulent.
â€œThere is no requirement for the auditor to prove the existence of fraud or other contractor irregularitiesâ€ before referring suspected cases to the Defense investigators, Cash wrote. â€œThe auditor is merely reporting the suspicion of irregularities to the appropriate investigative agencies.â€
The memo urges mangers to support auditors in their reporting of suspected fraud.
According to the Center for Public Integrity report, a DCAA manager denied a request by one of his auditors to report suspected fraud to criminal investigators because the auditor didnâ€™t have adequate proof. That incident happened last January, prior to a July Government Accountability Office report that showed DCAA auditors and managers were not adhering to government auditing standards.