U.S. General Services Administration

Administrator’s Semiannual

Management Report to Congress

Report No. 44

October 1, 2010

to March 31, 2011

U.S. General Services Administration
Martha Johnson
Administrator
Office of the Chief Financial Officer
Alison L. Doone
Chief Financial Officer
Office of the Controller
Faye C. Basden
Controller
Internal Control and Audit Division
Ralph L. Boldt
Director
May 2011
This report is in the public domain. Authorization to reproduce it in whole or in
part is granted. While permission to reprint this publication is not necessary, the
citation should be: U.S. General Services Administration, Office of the Chief
Financial Officer, Office of the Controller, Internal Control and Audit Division,
Administrator’s Semiannual Management Report to Congress, No. 44, Washington,
DC 20405.
To obtain copies of this report,
Write to: U.S. General Services Administration, Office of the Chief Financial
Officer, Office of the Controller, Internal Control and Audit Division (BEI), Room
470, 1275 First Street, NE Washington, DC 20417

E-mail your request to: Ralph.Boldt@gsa.gov

Call in your request: (202) 501-3094

Obtain a copy of this report on the Agency’s Web site at:
Semi Annual Report to Congress

Executive Summary

In accordance with the Inspector General Act Amendments of 1978, as amended,
the Administrator of General Services Administration submits this report to
Congress on final actions regarding audit recommendations. The report covers the
period from October 1, 2010 through March 31, 2011. The Act requires the
Administrator to report directly to the Congress on management decisions and final
actions taken on audit recommendations. The report must provide an explanation
in cases where final action has not been taken on an audit one year after the date of
the management decision. The report also summarizes management's
implementation of the recommendations contained in audit reports issued by
General Services Administration's Office of Inspector General.
During the reporting period, management decisions were issued on 60 audit reports.
Of this total, 40 audit reports represented $16,771,204 in disallowed costs and
$286,090,624 in funds to be put to better use. The latter category is comprised of
estimated and actual cost avoidance determined to have no impact on the agency's
budget. There were no management decisions this period that involved actual cost
avoidance determined to have a potential impact on the budget.
During the six-month period, GSA took final action on 28 audits with management
decisions identifying disallowed costs or funds to be put to better use. These audits
represent the recovery of $1,864,269 and the implementation of $3,315,254 of actual
cost avoidance determined to have no impact on the agency's budget. No cost
avoidance determined to have a potential impact on the budget was implemented
during the period.
As of March 31, 2011, 76 audit reports remained open without final action one year
after the management decision. Of this total, 13 were under formal administrative
or judicial appeal. The reasons of no actions have been taken with respect to the
remaining 63 audits are provided in the report.

Contents

Executive Summary ................................................................................................................................. 3
Introduction ............................................................................................................................................... 5
Overview ..................................................................................................................................................... 5
Organization of Audit Follow-up Program in General Services Administration ...................... 6
Organization Chart .................................................................................................................................. 8
Progress of Audit Closure ....................................................................................................................... 9
Audits with Disallowed Costs .............................................................................................................. 10
Audits with Better Use Funds ............................................................................................................. 11
American Recovery and Reinvestment Act (ARRA) Audits .......................................................... 12
Internal Audits ........................................................................................................................................ 13
Audits under Appeal/Litigation ........................................................................................................... 14
Contract Audits ....................................................................................................................................... 15
Glossary of Terms ................................................................................................................................... 22

Introduction

Overview

This report, submitted pursuant to the Inspector General Act of 1978, as amended,
presents management's perspective on audit resolution and follow-up activity at the
U. S. General Services Administration (GSA) for the period beginning October 1,
2010, through March 31, 2011. This is the agency's 44th report to the Congress
since the implementation of the Act (Public Law 100-504). The data in the report
indicates that GSA's audit follow-up efforts continue to play a significant role in the
effective management of the agency's operations and the accomplishment of its
mission.
U.S. General Services Administration Organization
GSA is organized around two major business functions represented by the Federal
Acquisition Service (FAS) and the Public Buildings Service (PBS). In addition,
there are 11 Regions and a number of Staff Offices that provide support to the other
GSA organizations.
The Administrator of GSA directs the execution of all functions pertaining to the
agency. Members of her office, as well as Regional Administrators and Heads of
Services and Staff Offices, advise and make recommendations on policy or
operational issues of national scope.
Each Service is lead by a Commissioner located in the Central Office in
Washington, DC. The Commissioners are responsible in their respective functional
areas for policy development, program direction, funding, and interfacing with
Congressional staffs, clients and other constituents regarding issues of policy of
international importance.
GSA is organized as a matrix. One vector is the functional area, Public Buildings
Service or Federal Acquisition Service. The other vector is geographical. Regional
Commissioners have direct functional line to the respective FAS/PBS
Commissioner. Simultaneously, the Regional Commissioners have a duty,
responsibility, and direct reporting relationship to the Regional Administrator
regarding the health of the region as an enterprise.

Organization of Audit Follow-up Program
in General Services Administration

Agency Audit Follow-up Process
GSA has effective systems in place for keeping track of audit recommendations. In
addition, GSA has senior management commitment to ensure that appropriate
corrective action is taken. Agency managers have the responsibility to act upon the
auditor's recommendations, with the audit resolution process being supervised by
the agency audit follow-up official. The following provides a description of the
responsibilities of GSA officials involved in the audit follow-up process.
Senior Agency Official
The Deputy Administrator is the Senior Agency Official responsible for audit follow-
up in the agency. As such, she has overall responsibility for ensuring the adequacy
of the agency's follow-up system, monitoring the resolution of audit
recommendations, and ensuring the prompt implementation of corrective actions.
She also makes final decisions to resolve differences between agency management
and the Office of Inspector General.
The Chief Financial Officer
The Chief Financial Officer provides administrative direction to the officials in the
Office of the Chief Financial Officer who manage GSA’s Audit Resolution and
Follow-up System. Their responsibilities include:

• Acting as the liaison with the Government Accountability Office (GAO) for
the coordination of GAO audits in progress within GSA and for preparation of
responses and reports for the signature of the Administrator on GAO
recommendations as required by law;

• Ensuring timely resolution and implementation of internal and external
audit recommendations made by the Office of Inspector General as well as
GAO;

• Overseeing the collection and proper accounting of amounts determined due
to the Government as the result of audit-related claims;

• Analyzing GSA’s programs upon request from the Administrator, particularly
as related to past or present audit recommendations; and,

• Maintaining an automated report control system for both internal and
external audits that provides an accurate means for tracking and
documenting actions taken in implementing audit recommendations.

Heads of Services and Staff Offices and Regional Administrators
Heads of Services and Staff Offices and Regional Administrators to whom audit
recommendations pertain, have primary responsibility for resolving and
implementing recommendations promptly. Their responsibilities include:

• Ensuring controls are implemented to provide timely, accurate, and complete
responses to audit reports;

• Developing, advocating, and documenting agency positions on audit
recommendations;

• Preparing responses to draft and final GAO reports in coordination with the
Office of the Chief Financial Officer; and

• Providing comments on audit decision papers prepared by the Office of
Inspector General to ensure that management's position on unresolved audit
recommendations is properly stated.

Organization Chart of the Agency

Progress of Audit Closure

FOR THE SIX-MONTH PERIOD ENDING MARCH 31, 2011

Timely closing of audits remains a priority for GSA. The Office of the Chief
Financial Officer (OCFO) staff worked with contracting officers and audit liaisons to
close out numerous internal and contract audits. From October 1, 2010 through
March 31, 2011, GSA closed approximately 22 percent, or 49 internal and contract
audits, of 228 open audits. The remaining 179 audits are open because of ongoing
litigation, negotiation, collections, and implementation of corrective actions.

Audits with Disallowed Costs

Final action for the six-month period
Ending MARCH 31, 2011

Number of
Audit
Reports

Disallowed
Costs

A. Audit reports for which final action had not been
taken by the commencement of the reporting period.

$46,175,804

B. Audit reports on which management decisions
were made during the reporting period.

$21,469,802

C. Audit reports on which final action was taken
during the reporting period.

$11,043,588

(i) the dollar value of disallowed costs that were
recovered by management through:

$1,911,074

- collections…………….………...$1,864,269

- offset………………….…….…...$46,805

- property in lieu of cash…….…$0

- other………………………….… $0

(ii) the dollar value of disallowed costs that were
written off by management.

$5,373,935

D. Audit reports for which no final action has been
taken by the end of the reporting period.

$56,602,018

Audits with Better Use Funds

Final action for the six-month
period ending MARCH 31, 2011

Number of
Audit
Reports

No Budget Impact
(Actual and
Estimated)

Budget
Impact

A. Audit reports for which final action had
not been taken by the commencement of the
reporting period.

$752,658,237

B. Audit reports on which management
decisions were made during the reporting
period.

$253,463,337

C. Audit reports for which final action was
taken during the reporting period.

$355,897,031

(i) the actual dollar value of
recommendations that were actually
completed.

$3,315,254

(ii) the actual dollar value of
recommendations that management
has subsequently concluded should not
or could not be implemented or
completed.

(iii) the actual dollar value of
recommendations that management
has subsequently concluded should not
or could not be determined (calculated).

(iv) the estimated dollar value of “funds
to be put to better use” as agreed to by
GSA management and the OIG.

$352,581,777

D. Audit reports for which no final action
had been taken by the end of the reporting
period.

$650,224,543

American Recovery and Reinvestment Act (ARRA) Audits
The American Recovery and Reinvestment Act of 2009 (Recovery Act) authorized
the GSA Public Buildings Service (PBS) to invest $5.5 billion in federal public
building projects. This includes $4.5 billion to transform federal facilities into high-
performance green buildings, $750 million to renovate and construct new federal
offices and courthouses, and $300 million to construct and renovate border stations.
As a result of this increased spending, GSA has developed and is implementing risk
assessments and control methodologies to ensure Recovery Act funds are awarded
and distributed in a prompt, fair, and reasonable manner; recipients and uses of
Recovery Act funds are transparent to the public; and public benefits of the funds
are reported clearly, accurately, and in a timely manner. To assist in the
implementation of these goals, all Recovery Act monies are tracked and reported.
As of March 31, 2011, there are 46 GSA Recovery Act audits, totaling $ 140,937,670
in dollars audited.

Internal Audits

Audits with Management Decisions Made Prior to March 31, 2010,
But with Final Action not Taken as of March 31, 2011

REPORT NUMBER
TITLE OF REPORT

DATE OF
REPORT

MANAGEMENT DECISION
AMOUNTS

REASON FOR
NO FINAL
ACTION

PROJECTED
COMPLETION
DATE

Disallowed
Costs

Better
Use
Funds

A060190Q6P07004

MAS Contract Workload

07/31/2007

FAS has
submitted a
revised action plan
for OIG review.

5/15/2011

A070180OTW07001

GSA'S Electronic Messaging
Services (GEMS) And
National Notes
Infrastructure (GNNI)

09/12/2007

Re-opened based
on implementation
review. GSA is
tracking action
plan until
complete.

3/30/2012

A060228OTF08007

Improvements To the GSA
Privacy Act To Protect PII

03/31/2008

Action plan is
currently being
implemented.

11/15/2011

A080081OTF08016

FISMA Review of IT
Security Program

09/11/2008

Action Plan in
implementation
stage.

11/15/2011

A070199PRR09002

Leasing Prospectus

07/15/2009

Action Plan in
implementation
stage.

4/15/2011

A080179P2R09003

Lease Payment Recoveries

07/24/2009

Re-opened due to
implementation
review.

4/15/2011

A080226QAP09006

Unnecessary Duplication of
Services

09/30/2009

Action plan is still
in implementation
stage

7/15/2011

Audits under Appeal/Litigation

REPORT NUMBER
NAME OF CONTRACTOR

DATE OF
REPORT

MANAGEMENT DECISION AMOUNTS

Disallowed Costs

Better Use Funds

A030140FWX03056

Science Applications Int’l Corp.

03/25/2003

$1,028,099

A060196P9X07091

Tigard Electric, Incorporated

08/28/2007

$988,088

A080084P7X08061

Kemor Electrical Company, LP

04/29/2008

$312,148

A080077Q5X08087

Gartner, Inc.

08/05/2008

$5,753,000

A080185P9X09016

Pacific Coast Steel

12/16/2008

$2,199,853

A080220P9X09022

Boyett Door and Hardware

01/09/2009

$526,039

A090217P9X09100

Aecom U.S.

09/08/2009

$394,889

A090215P9X09110

Ross Cusenbery Architecture,
Incorporated

09/16/2009

$74,638

A090118Q6X09123

Murray-Benjamin Electric Co.

09/25/2009

$461,494

A090098Q6X10014

Point Blank Body Armor, Inc.

11/09/2009

$18,115,740

A090216P9X10036

Ross Drulis Cusenbery
Architecture

02/24/2010

$1,753,518

Contract Audits

Audits with Management Decisions Made Prior to March 31, 2010, but with
Final Action not Taken as of March 31, 2011

REPORT NUMBER
NAME OF
CONTRACTOR

DATE OF
REPORT

MANAGEMENT DECISION
AMOUNTS

REASON FOR NO
FINAL ACTION

Disallowed
Costs

Better Use
Funds

A010127P6X01079

DKW CONSTRUCTION,
INC.

04/30/2001

$303,193

GSA in process of collecting
funds owed the Government
from the contractor.

A63630FWX02004

THE PRESIDIO
CORPORATION

10/18/2001

$273,000

GSA in process of collecting
funds owed the Government
from the contractor.

A030140FWX03056

SCIENCE
APPLICATIONS INT'L
CORP.

03/25/2003

$1,028,099

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A050105F6X06006

BCOP FEDERAL

10/12/2005

$882,549

$29,550,000

GSA in process of collecting
funds owed the Government
from the contractor.

A050122F6X06059

FASTERNAL COMPANY

04/18/2006

$35,274

An investigation has been
opened by either the OIG or
the Justice Department
regarding actions taken by the
contractor.

A060196P9X07091

TIGARD ELECTRIC,
INCORPORATED

08/28/2007

$988,088

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A080084P7X08061

KENMOR ELECTRICAL
COMPANY, LP

04/29/2008

$312,148

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A080077Q5X08087

GARTNER, INC.

08/05/2008

$5,753,000

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A080177Q9X09015

Tecolote Research,
Incorporated

12/12/2008

$658,765

Negotiations are proceeding
between Contracting Officer
and contractor.

A080185P9X09016

Pacific Coast Steel

12/16/2008

$2,199,853

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A080220P9X09022

Boyett Door and Hardware

01/09/2009

$526,039

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.
Awaiting Legal Opinion.

A080136Q2X09028

Dynamic Decisions, Inc.

01/20/2009

Negotiations have been
completed between
Contracting Officer and
contractor.

A090005Q9X09033

Intratek Computer
Incorporated

01/28/2009

Negotiations are proceeding
between Contracting Officer
and contractor.

A080067Q5X09035

Haworth, Holland, MI

02/04/2009

$65,000,000

Negotiations are proceeding
between Contracting Officer
and contractor.

A080085Q6X09043

The HON Company

03/03/2009

$31,298,140

Negotiations are proceeding
between Contracting Officer
and contractor.

A080212Q3X09047

Phillips Corporation
Federal Division

03/23/2009

$27,429

$1,445,916

Negotiations are proceeding
between Contracting Officer
and contractor.

A080203Q4X09061

Simplex Grinnell LP

04/23/2009

$18,373,179

Negotiations are proceeding
between Contracting Officer
and contractor.

A080210Q6X09062

Immix Technology, Inc.

04/27/2009

$711,525

Negotiations are proceeding
between Contracting Officer
and contractor.

A080077Q5X09071

Gartner, Inc. Stamford,
CT

06/11/2009

$1,486,750

Negotiations are proceeding
between Contracting Officer
and contractor.

A090007Q6X09075

Booz Allen Hamilton, Inc.

07/08/2009

$806,948

$68,696,732

Negotiations are proceeding
between Contracting Officer
and contractor.

A080223Q6X09085

AT&T Corp.

08/19/2009

$4,301,108

Negotiations have been
completed between
Contracting Officer and
contractor.

A090106Q3X09084

Perot Systems Government
Services, Inc.

08/19/2009

$34,758

$33,743,210

GSA is in the process of
collecting funds owed the
government from the
contractor.

A090117Q9X09088

Monster Government
Solutions

08/20/2009

Negotiations are proceeding
between Contracting Officer
and contractor.

A080030Q3X09087

Hewlett-Packard Company

08/21/2009

$59,353

$81,038,538

Negotiations are proceeding
between Contracting Officer
and contractor.

A090090Q2X09086

Ezenia!, Inc.

08/21/2009

Negotiations are proceeding
between Contracting Officer
and contractor.

A090131Q6X09092

Avid Technology, Inc.

08/24/2009

$2,394,174

$2,481,315

Negotiations are proceeding
between Contracting Officer
and contractor.

A090228PCX09094

Green Horne & O'Mara,
Inc.

08/27/2009

$53,000

Negotiations have been
completed between
Contracting Officer and
contractor.

A090089Q4X09095

Mohawk Carpet
Corporation: Lees Carpets
Division

09/03/2009

$124,119

$3,394,643

GSA is in the process of
collecting funds owed the
government from the
contractor.

A090074Q7X09099

Tech Flow, Inc.

09/04/2009

$4,373,215

Negotiations are proceeding
between Contracting Officer
and contractor.

A090254PCX09097

Green horne & O'Mara,
Inc.

09/04/2009

$118,000

Negotiations have been
completed between
Contracting Officer and
contractor.

A090230PCX09103

Goody, Clancy, and
Associates, Inc.

09/09/2009

$124,032

Negotiations have been
completed between
Contracting Officer and
contractor.

A090232PCX09101

Haley & Aldrich, Inc.

09/09/2009

$11,762

Negotiations have been
completed between
Contracting Officer and
contractor.

A090234PCX09102

HDR Architecture, Inc.

09/10/2009

$809,387

Negotiations have been
completed between
Contracting Officer and
contractor.

A090242PCX09106

Olin Partnership

09/11/2009

$100,894

Negotiations have been
completed between
Contracting Officer and
contractor.

A090239PCX09108

Shen Milsom & Wilke

09/14/2009

$90,385

Negotiations have been
completed between
Contracting Officer and
contractor.

A090233PCX09109

HC YU and Associates

09/15/2009

$45,178

Negotiations have been
completed between
Contracting Officer and
contractor.

A090215P9X09110

Ross Cusenbery
Architecture, Incorporated

09/16/2009

$74,638

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A090237PCX09111

Rhode side & Harwell, Inc.

09/16/2009

$310,194

Agreement has not been
reached between OIG and
Contracting Officer on the
Decision Record.

A090246PCX09113

A&F Engineers, Inc.

09/17/2009

$30,608

Negotiations have been
completed between
Contracting Officer and
contractor.

A090231PCX09114

Gruzen Samton Architects,
LLP

09/21/2009

$45,134

Negotiations have been
completed between
Contracting Officer and
contractor.

A090252PCX09116

Code Consultants

09/21/2009

$88,996

Negotiations have been
completed between
Contracting Officer and
contractor.

A090253PCX09115

O'Neal Technologies, Inc.

09/21/2009

$606,342

Negotiations have been
completed between
Contracting Officer and
contractor.

A090229PCX09117

ARUP USA, INC.

09/22/2009

$192,302

Negotiations have been
completed between
Contracting Officer and
contractor.

A090245PCX09118

Thornton Tomasetti, Inc.

09/23/2009

$93,612

Negotiations have been
completed between
Contracting Officer and
contractor.

A090247PCX09120

Hinman Consulting
Engineers, Inc.

09/24/2009

$28,621

Negotiations have been
completed between
Contracting Officer and
contractor.

A090118Q6X09123

Murray-Benjamin Electric
Co.

09/25/2009

$461,494

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A090241PCX09121

Einhorn Yaffee Prescott
Architecture &
Engineering, P.C.

09/25/2009

$222,987

Negotiations have been
completed between
Contracting Officer and
contractor.

A090250PCX09122

RTM Consultants, Inc.

09/25/2009

$49,601

Negotiations have been
completed between
Contracting Officer and
contractor.

A090244PCX09124

JVP Engineers, P.C.

09/28/2009

$254,455

Negotiations have been
completed between
Contracting Officer and
contractor.

A090251PCX09125

Kroll Security Group

09/28/2009

$32,710

Negotiations have been
completed between
Contracting Officer and
contractor.

A090235PCX09127

Kohnen-Starkey, Inc.

09/29/2009

$24,739

Negotiations have been
completed between
Contracting Officer and
contractor.

A090243PCX09126

Syska & Hennessy, Inc.

09/29/2009

$295,245

Negotiations have been
completed between
Contracting Officer and
contractor.

A090248PCX09129

Schnabel Engineering,
LLC

09/29/2009

$278,256

Negotiations have been
completed between
Contracting Officer and
contractor.

A080143Q2X10003

Stanley Associates

10/08/2009

$5,424,297

GSA is in the process of
collecting funds owed the
government from the
contractor.

A090249PCX10001

Project Management
Services, Inc.

10/08/2009

$629,199

Negotiations have been
completed between
Contracting Officer and
contractor.

A080155Q2X10006

Cascades Technologies,
Inc.

10/21/2009

$261,525

GSA is in the process of
collecting funds owed the
government from the
contractor.

A090170Q9X10007

eTouch Systems
Corporation: Fremont,
California

10/23/2009

Negotiations are proceeding
between Contracting Officer
and contractor.

A090124Q4X10009

Intergraph Corporation

10/29/2009

$8,080

$14,190,000

GSA is in the process of
collecting funds owed the
government from the
contractor.

A090098Q6X10014

Point Blank Body Armor,
Inc.

11/09/2009

$18,115,740

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A090202Q6X10016

Computech

11/09/2009

$19,043,879

Negotiations are proceeding
between Contracting Officer
and contractor.

A080144Q7X10019

BMC Software, Inc.

11/17/2009

$3,246,860

Negotiations have been
completed between
Contracting Officer and
contractor.

A090159Q5X10022

RCF Information Systems

12/10/2009

$4,459

$522,882

Negotiations are proceeding
between Contracting Officer
and contractor.

A090240PCX10023

Zimmer Gunsul Frasca
Architects LLP

12/16/2009

$4,254,124

Negotiations have been
completed between
Contracting Officer and
contractor.

A090189Q9X10025

Cascade Designs, Inc.
Seattle, Washington

12/21/2009

$1,144,541

Negotiations are proceeding
between Contracting Officer
and contractor.

A090105P9X10029

Marelich Mechanical
Company, Inc.

01/26/2010

$8,999,504

Negotiations are proceeding
between Contracting Officer
and contractor.

A080206P9X10031

Dick Corporation/Morganti
Group, A Joint Venture

02/01/2010

$22,596,628

Negotiations are proceeding
between Contracting Officer
and contractor.

A090216P9X10036

Ross Drulis Cusenbery
Architecture

02/24/2010

$1,753,518

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A100087P9X10040

AECOM Design, a Division
of AECOM U.S

03/17/2010

$1,116,352

The contractor has appealed
the Contracting Officer's
decision and the audit is now
in the litigation process.

A100041P9X10041

T&M Manufacturing, Inc.
Tremonton, Utah

03/18/2010

$3,952,019

Negotiations are proceeding
between Contracting Officer
and contractor.

Glossary of Terms

The following definitions, based on the Inspector General Act Amendment of 1988,
apply to terms used in this Semiannual Management Report:

Questioned Costs. Costs questioned by the OIG as a result of:

• an alleged violation of a provision of a law, regulation, contract, grant,
cooperative agreement, or other agreement or document governing the
expenditure of funds;

• a finding that, at the time of an audit, such cost is not supported by adequate
documentation; or

• a finding that the expenditure of funds for the intended purpose is
unnecessary or unreasonable.

Disallowed Cost. Questioned costs that GSA management in a management
decision sustained or agreed should not be charged to the Government.

Recommendation that Funds be Put to Better Use. A recommendation by the
OIG that funds could be used more efficiently if management took action to
implement and complete the recommendations, including:

• reductions in outlays;

• de-obligation of funds from programs or operations;

• withdrawal of interest subsidy costs on loans or loan guarantees, insurance
or bonds;

• costs not incurred by implementing recommended improvements related to
the operations of the establishment, a contractor or grantee;

• avoidance of unnecessary expenditures noted in pre-award reviews of
contract or grant agreements; or

• any other savings that are identified specifically.

Management Decision. The evaluation by management of the findings and
recommendations included in an audit report and the issuance of a final decision by
management concerning its response to such findings and recommendations,
including planned corrective actions to remedy weaknesses identified in the report.
Final Action. The completion of all actions that GSA management concluded in its
management decision were necessary with respect to the findings and
recommendations included in the audit report. In the event that GSA management
concluded no action was necessary, final action occurred when the management
decision was made.
Management Actions – Questioned Costs. The following is a list of the different
management actions used by GSA management to resolve questioned costs in an
audit report.

• Audit reports on which management decisions were made during the
period: Data pertaining to the number of audit reports on which
management decisions were made during the period and the associated
amount of disallowed costs was furnished by the OIG.

• Write-offs: For the purposes of this report, write-offs are interpreted to
represent the difference between the disallowed cost and the amount
successfully recovered.

Management Actions – Better Use Funds. The following is a list of the different
management actions used by GSA management to resolve the “better use” of funds
in an audit report.

• Better Use Funds: The figure represents amounts cited as “cost avoidance”
and “funds to be put to better use,” as agreed to by GSA management and the
OIG. Prior to April 1990, no funds were identified by the OIG specifically as
“funds to be put to better use,” and no management decisions were issued
based on the consideration of “better use” of funds.

• Budget Impact Funds: Funds identified as “budget impact” involve the
obligation process. Audit-related savings of these funds, depending on the
particular fund involved, may be available for reprogramming.

• No Budget Impact Funds: Funds identified as “no budget impact” are
composed of estimated and actual amounts, and do not involve obligated
monies, and, therefore, cannot be construed as having a material effect on
GSA’s appropriated funds.

• Audit reports on which management decisions were made during the
period: Data pertaining to the number of audit reports on which
management decisions were made during the period and the associated dollar
amounts agreed to by management were furnished by the OIG.

• Value of recommendations that management concluded should not
or could not be calculable: Management was unable to determine the
award amounts and “better use funds” implemented since the amount is
included in the overall award to the prime contractor and savings could not
be determined.

U.S. General Services Administration

1800 F Street, NW

Washington, DC 20405