Report to the Secretary of Defense
Independent Review Panel Report
on the Defense Contract Audit
Agency
Report FY09-1
Recommendations for improving DCAA
mission, strategic planning, culture, structure,
and business practices
October 2008
Defense Business Board
Independent Review Panel Report on
the Defense Contract Audit Agency
TASK
On August 19, 2008 the Deputy Secretary of Defense established an
Independent Review Panel under the Defense Business Board (DBB) to
review Defense Contract Audit Agency (DCAA) operations and make
actionable recommendations for improvement. The establishment of the
Independent Review Panel followed a Government Accountability Office
(GAO) investigation of selected DCAA audits that identified serious failures
to comply with Generally Accepted Government Auditing Standards
(GAGAS), a lack of independence and objectivity, and management
actions that intimidated auditors, impaired some audits, and created a
generally abusive environment.
The Terms of Reference established by the Deputy Secretary of
Defense tasked the Independent Review Panel with delivering actionable
recommendations to help the Department of Defense:
1. Enhance a culture of improving performance and accountability
within DCAA, particularly regarding independence and standards
of auditing;
2. Better align the DCAA organizational structure to provide
excellence in management and oversight; and
3. Adopt best business practices in DCAA.
Appendix A contains the Terms of Reference.
Appendix B contains pertinent background information and detailed
observations that support the recommendations approved by the DBB on
October 23, 2008.
Appendix C contains the recommendations as approved by the DBB
in their October 2008 quarterly meeting.
Mr. Jeffrey Steinhoff chaired the Independent Review Panel. Other
panel members included The Honorable Joseph Wright (a member of the
Defense Contract Audit Agency
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REPORT FY09-1
Defen