U.S. General Services Administration 
Martha Johnson 

Administrator 

Office of the Chief Financial Officer 

Micah Cheatham 

Chief Financial Officer, Acting 

Office of the Controller 

Faye C. Basden 

Controller 

Internal Control and Audit Division 

Ralph L. Boldt 

Director 

May 2010 

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. 42, 

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), 1800 
F St., N.W., Washington, DC 20405-0001; 

Fax your request to: (202) 208-7378; 

E-mail your request to: Travis.Lewis@gsa.gov; 

Call in your request: (202) 219-3078; or 

Obtain a copy of this report on the Agency’s Web site at: 

http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=10645 

1 


EXECUTIVE SUMMARY 

In accordance with the Inspector General Act of 1978, as amended, the 
Administrator of the General Services Administration submits this report to 
Congress on final actions regarding audit recommendations. The report covers 
the period from October 1, 2009 through March 31, 2010. The Act requires theAdministrator to report directly to the Congress on management decisions and 
final actions taken on audit recommendations. The report must also explain 
why final action on any audit has not been taken one year after the date of the 
management decision. This submission statistically summarizes management's 
implementation of the recommendations contained in audit reports issued by 
the GSA's Office of Inspector General. 

During the reporting period, management decisions were issued on 87 audit 
reports. Of this total, 70 audit reports represented $27,864,230 in disallowed 
costs and $259,464,996 in funds to be put to better use. The latter categoryincludes $255,512,977 in estimated and actual cost avoidance determined to 
have no impact on the agency's budget and $3,952,019 in actual cost avoidance 
determined to have potential impact on the budget. 

During the six-month period, final action was achieved for 55 audits with 
management decisions identifying disallowed costs or funds to be put to better 
use. These audits represent the recovery of $8,048,449 and the implementation 
of $4,578,283 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, 2010, 37 audit reports remained open without final action one 
year after the management decision. Of this total, 5 were under formal 
administrative or judicial appeal. Explanations of the reasons why final actions 
have not been taken with respect to the remaining 32 audits are provided in the 
report. 

2 


TABLE OF CONTENTS 


Page 

Introduction 

Overview…………………………………………………………………………………..4 

U.S. General Services Administration Organizations...……………..……..…..….4 
Agency Audit Follow-up Process………………………………………….……...…...5 
Organization Chart……………………………………………………………………..7 

Progress of Audit Closure……………..……….…………………..……………..….8 
Audits with Disallowed Costs………………………..……………....……………..9 
Audits with Better Use Funds………………….………………………………….10 
American Recovery and Reinvestment Act (ARRA) Audits………..…..…11 
Internal Audits………………………..………………...........……………...…...…..13 
Audits under Appeal/Litigation…………………………………...………………14 
Contract Audits……………………………………………….…………...................15 
Glossary of Terms……………………………………………………………………..18 

3 


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 General Services Administration (GSA) for the period beginning 
October 1, 2009 through March 31, 2010. This is the agency's 42nd 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 and the Public Buildings Service. 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, Regional 
Commissioners and Heads of Services and Staff Offices, advise and make 
recommendations on policy or operational issues of national scope. 

Each Service is led 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 national 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 a direct functional line to the 
respective FAS/PBS Commissioner. Simultaneously, the RegionalCommissioners have a duty, responsibility, and direct reporting relationship to 
the Regional Administrator regarding the health of the region as an enterprise. 

4 


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 responsibilityto 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 wellas 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. 
5 


Heads of Services and Staff Offices and Regional Commissioners 

Heads of Services and Staff Offices and Regional Commissioners 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. 
6 


Organization Chart 

DEPUTY 
ADMINISTRATOR 
ASSISTANT 
ADMINISTRATOR 
National 
Services 

FEDERAL 
ACQUISITION 
SERVICE 
PUBLIC 
BUILDINGS 
SERVICE 
OFFICE OF 
INSPECTOR 
GENERAL 
CIVILIAN BOARD 
OF CONTRACT 
APPEALS

Under the Office of the 
Administrator 

 WHITE HOUSE 
LIAISON 

CHIEF OF STAFF 

SENIOR COUNSELOR 
TO THE 
ADMINISTRATOR 
ASSOCIATE 
ADMINISTRATOR 
Regional Central 
Services Office 

NEW ENGLAND THE HEARTLAND 
REGION 1 REGION 6 
NORTHEAST AND GREATER 
CARIBBEAN SOUTHWEST 
REGION 2 REGION 7 
MID-ATLANTIC 
REGION 3 
ROCKY 
MOUNTAIN 
REGION 8 
SOUTHEAST 
SUNBELT 
REGION 4 
PACIFIC RIM 
REGION 9 
GREAT LAKES 
REGION 5 
NORTHWEST/
ARCTIC 
REGION 10 

NATIONAL 
CAPITAL 
REGION 11 

OFFICE OF CITIZEN 
SERVICES & 
COMMUNICATIONS 
OFFICE OF 
GOVERNMENTWIDE 
POLICY & CHIEF 
ACQUISITION 
OFFICER 
OFFICE OF THE 
CHIEF FINANCIAL 
OFFICER 
OFFICE OF 
CONGRESSIONAL & 
INTERGOVERNMENTAL 
AFFAIRS 
OFFICE OF THE 
CHIEF 
INFORMATION 
OFFICER 
OFFICE OF 
EMERGENCY 
RESPONSE & 
RECOVERY 
OFFICE OF THE 
CHIEF PEOPLE 
OFFICER 
OFFICE OF 
PERFORMANCE 
IMPROVEMENT 
OFFICE OF 
SMALL BUSINESS 
UTILIZATION 
OFFICE OF 
GENERAL 
COUNSEL 
OFFICE OF CIVIL 
RIGHTS 
ADMINISTRATOR 

7 


PROGRESS OF AUDIT CLOSURE 

FOR THE SIX-MONTH PERIOD ENDING MARCH 31, 2010 

Timely closing of audits remains a priority for the U.S. General Services 
Administration. In keeping with that focus, the Office of the Chief Financial 
Officer (OCFO) staff worked with contracting officers and audit liaisons in 
obtaining supporting documentation to close out numerous internal and 
contract audits. During the reporting period of October 1, 2009, through March 
31, 2010, OCFO staff successfully closed 29 percent, or 85 internal and contract 
audits out of 296 audits that were reported as open. The remaining 211 audits 
that could not be closed are due to litigation, negotiation, collections, and 
implementation of corrective actions. The decreased percentage of total closedaudits from previous years is due to the increased number of internal and 
contract audits issued by the OIG during the period relating to the American 
Recovery and Reinvestment Act (ARRA). 

Open and Closed Audits 

October 1, 2009 - March 31, 2010 

296 
85 
211 
0 
50 
100 
150 
200 
250 
300 
350 
Total Open Audits Total Closed Audits Total In Progress 

8 


AUDITS WITH DISALLOWED COSTS 

Final action for the six-month periodEnding MARCH 31, 2010 
Number of 
Audit 
Reports 
Disallowed 
Costs 
A. Audit reports for which final action had 
not been taken by the commencement of thereporting period. 
29 $22,012,254 
B. Audit reports on which management 
decisions were made during the reportingperiod. 
17 $27,864,230 
C. Audit reports on which final action was 
taken during the reporting period. 
11 $12,953,938 
(i) the dollar value of disallowed costs that were 
recovered by management through: $11,768,153 
- collections…………….………...$8,048,449 
- offset………………….…….…...$3,542,282 
- property in lieu of cash…….…$0 
- other………………………….… $177,422 
(ii) the dollar value of disallowed costs that were 
written off by management. $1,185,785 
D. Audit reports for which no final action 
has been taken by the end of the reportingperiod. 
35 $36,922,546 
9 


AUDITS WITH BETTER USE FUNDS 


Final action for the six-month 
period ending MARCH 31, 2010 
A. Audit reports for which final 
action had not been taken by thecommencement of the reportingperiod. 
B. Audit reports on which 
management decisions were made 
during the reporting period. 
87 

C. Audit reports for which final 
action was taken during thereporting period. 
47 
(i) the actual dollar value of 
recommendations that were actually 
completed. 
(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. 
D. Audit reports for which no final 
action had been taken by the end ofthe reporting period. 
Number of 
Audit 
Reports 

79 

55 

No BudgetImpact – Actualand Estimated 
$666,189,765 
BudgetImpact 
$1,486,750 
$255,512,977 $3,952,019 
$315,898,740 
$4,578,283 
$5,974,447 
$0 
$0 
$0 
$1,523,192 $0 
$303,822,818 
$605,804,002 
N/A 
$5,438,769 

10 


AMERICAN RECOVERY AND 
REINVESTMENT ACT (ARRA) AUDITS 


The American Recovery and Reinvestment Act of 2009 (Recovery Act)
authorized the General Services Administration’s (GSA) Public BuildingsService (PBS) to invest $5.5 billion in Federal public building projects. This 
includes $4.5 billion to transform Federal facilities into exemplary high-
performance green buildings, $750 million to renovate and construct new 
Federal offices and courthouses, and $300 million to construct and renovate 
border stations. Due to this increased agency spending, GSA is developing and 
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 all Recovery Act funds are transparent to the 
public, and public benefits of these funds are reported clearly, accurately, and in 
a timely manner. To assist in the implementation of these goals, all Recovery 
Act monies are being tracked and reported. As of March 31, 2010, there are 35 
GSA ARRA-related audits, totaling $146,783,681 in dollars audited. A 
summary of these audits are summarized in the chart on the following page. 

11 


ARRA Audits 
Audit # Total Dollars Questioned 
Amt Funds Put to Better Use 
Reviewed Total Unsupp. Total Unsupp. 

A090214P9X09083 $ 1,974,984.00 $0.00 $0.00 $92,869.00 $0.00 
A090199P9X09080 $ 4,942,327.00 $0.00 $0.00 $70,762.00 $0.00 
A090242PCX09106 $ 1,994,671.00 $0.00 $0.00 $100,894.00 $0.00 
A090201P9X09079 $ 1,680,117.00 $0.00 $0.00 $395,337.00 $0.00 
A090254PCX09097 $ 5,841,031.00 $0.00 $0.00 $118,000.00 $0.00 
A090232PCX09101 $ 863,859.00 $0.00 $0.00 $11,762.00 $0.00 
A090228PCX09094 $ 2,652,206.00 $0.00 $0.00 $53,000.00 $0.00 
A090230PCX09103 $ 21,022,391.00 $0.00 $0.00 $124,032.00 $0.00 
A090234PCX09102 $ 13,541,780.00 $0.00 $0.00 $809,387.00 $192,400.00 
A090238PCX09105 $ 2,313,490.00 $0.00 $0.00 $0.00 $0.00 
A090233PCX09109 $ 2,258,920.00 $0.00 $0.00 $45,178.00 $0.00 
A090239PCX09108 $ 1,269,754.00 $0.00 $0.00 $90,385.00 $12,500.00 
A090237PCX09111 $ 1,789,942.00 $0.00 $0.00 $310,194.00 $0.00 
A090236PCX09112 $ 1,021,306.00 $0.00 $0.00 $0.00 $0.00 
A090231PCX09114 $ 2,399,864.00 $0.00 $0.00 $45,134.00 $0.00 
A090253PCX09115 $ 1,925,000.00 $0.00 $0.00 $606,342.00 $0.00 
A090246PCX09113 $1,020,274.00 $0.00 $0.00 $30,608.00 $0.00 
A090252PCX09116 $ 886,509.00 $0.00 $0.00 $88,996.00 $0.00 
A090193P9X09078 $ 12,406,242.00 $0.00 $0.00 $313,462.00 $0.00 
A090245PCX09118 $2,853,806.00 $0.00 $0.00 $93,612.00 $0.00 
A090247PCX09120 $ 788,848.00 $0.00 $0.00 $28,621.00 $0.00 
A090250PCX09122 $ 887,966.00 $0.00 $0.00 $49,601.00 $0.00 
A090241PCX09121 $ 8,706,741.00 $0.00 $0.00 $222,987.00 $0.00 
A090251PCX09125 $ 931,012.00 $0.00 $0.00 $32,710.00 $0.00 
A090244PCX09124 $ 1,760,528.00 $0.00 $0.00 $254,455.00 $21,763.00 
A090235PCX09127 $ 1,439,293.00 $0.00 $0.00 $24,739.00 $0.00 
A090243PCX09126 $ 5,433,000.00 $0.00 $0.00 $295,245.00 $0.00 
A090248PCX09129 $ 719,353.00 $0.00 $0.00 $278,256.00 $206,450.00 
A090229PCX09117 $ 6,169,039.00 $0.00 $0.00 $192,302.00 $0.00 
A090240PCX10023 $ 29,364,836.00 $0.00 $0.00 $4,254,124.00 $0.00 
A090249PCX10001 $ 1,761,984.00 $0.00 $0.00 $629,199.00 $0.00 
A090172PRR10001 $0.00 $0.00 $0.00 $0.00 $0.00 
A090194P2X10012 $ 1,003,523.00 $0.00 $0.00 $11,044.00 $0.00 
A090200P2X10026 $ 2,736,790.00 $0.00 $0.00 $244,702.00 $0.00 
A090224P2X10027 $ 422,295.00 $0.00 $0.00 $87,881.00 $0.00 
Totals $ 146,783,681.00 $ $ 
$
10,005,820.00 $433,113.00 

12 


INTERNAL AUDITS 

AUDITS WITH MANAGEMENT DECISIONS MADE 
PRIOR TO MARCH 31, 2009, BUT WITH 
FINAL ACTION NOT TAKEN AS OF MARCH 31, 2010 

REPORT 
NUMBER TITLE 
OF REPORT 
DATE OF 
REPORT 
MANAGEMENT 
DECISION 
AMOUNTS 
REASON 
FOR NO 
FINAL 
ACTION 
PROJECTED 
COMPLETION 
DATEDisallowed 
Costs 
Better 
Use 
Funds 
A020161F3V03003 
Consolidation of Action plan is 
Distribution Center 03/18/2003 $0 $0 currently being 09/15/2013 
Operations implemented. 
A060149QTP07002 
Electronic Contract Action plan is 
Proposal/Modification 03/06/2007 $0 $0 currently being 06/15/2010 
System implemented. 
A060190Q6P07004 
Multiple Award Action plan is 
Schedule (MAS) 07/31/2007 $0 $0 currently being 3/15/2011 
Contract Workload implemented. 
A070164QAP08004 
Inventory Management 
Software 03/21/2008 $0 $0 
Action plan is 
currently being 
implemented. 
9/30/2012 
A060228OTF08007 
Improvements to the Action plan is 
GSA Privacy Act to 03/31/2008 $0 $0 currently being 10/15/2010 
Protect PII implemented. 
A080081OTF08016 
FISMA Review of IT 
Security Program 09/11/2008 $0 $0 
Action plan is 
currently being 
implemented. 
3/15/2011 
A060101P2R08006 
Audit of Reimbursable 
Work Authorizations 09/30/2008 $0 $0 
Action plan is 
currently being 
implemented. 
6/15/2010 

13 


AUDITS UNDER APPEAL/LITIGATION AUDITS UNDER APPEAL/LITIGATION 
REPORT NUMBER DATE OF 
MANAGEMENT DECISION AMOUNTS 
NAME OF CONTRACTOR REPORT Disallowed Costs Better Use Funds 
A030140FWX03056 
Science Applications Int'l Corp. 03/25/2003 $0 $1,028,099 
A080084P7X08061 
Kenmor Electrical Company, LP 04/29/2008 $0 $312,148 
A080077Q5X08087 
Gartner, Inc. 08/05/2008 $0 $5,753,000 
A080200P3X09042 
Wm. T. Spaeder Co, Inc. 02/19/2009 $0 $154,039 
A090111P6X10011 
Midtown Development 10/30/2009 $0 $3,280,021 


CONTRACT AUDITS 


AUDITS WITH MANAGEMENT DECISIONS MADE PRIOR 
TO MARCH 31, 2009, BUT WITH FINAL ACTION NOT 
TAKEN AS OF MARCH 31, 2010 

REPORT 
NUMBER DATE OF 
MANAGEMENT 
DECISION 
AMOUNTS REASON FOR NO 
FINAL ACTIONNAME OF 
CONTRACTOR 
REPORT 
Disallowed 
Costs 
Better Use 
Funds 
A010127P6X01079 
DKW Construction, Inc. 04/30/2001 $303,193 $0 
GSA is in the process of 
collecting funds owed the 
government from the 
contractor. 
A63630FWX02004 
The Presidio Corporation 10/18/2001 $273,000 $0 
GSA in process of collecting 
funds owed the Government 
from the contractor. 
A030140FWX03056 
Science Applications Int'l 
Corp. 03/25/2003 $0 $1,028,099 
The contractor has appealed 
the Contracting Officer's 
decision and the audit is now 
in the litigation process. 
A030186F5X04054 
NOVA Solutions, Inc. 03/09/2004 $46,805 $0 
Contracting Officer has 
determined that Nova does 
not owe GSA and is working 
with auditor for agreement to 
close out – anticipate 
completion Mid-2010. 
A040162F5X04053 
NOVA Solutions, Inc. 03/09/2004 $0 $17,000 
GSA in process of collecting 
funds owed the government 
from the contractor. 
A050112F7X05068 
Entrust Inc. 05/10/2005 $0 $3,300,000 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 
A050105F6X06006 
BCOP Federal, Inc. 10/12/2005 $0 $29,550,000 
Negotiations are proceeding 
between contracting officer 
and contractor. 
A050248T9X06056 
Information Support, Inc. 03/30/2006 $3,138,873 $0 
In collections. 

15 


A050122F6X06059 
Fasternal Company, Inc. 04/18/2006 $35,274 $0 
In the Investigation Process. 
An investigation has been 
opened by the GSA OIG and 
the Department of Justice 
regarding actions taken by the 
contractor. 
A060206T9X07012 
Information Systems 
Support Incorporated 
10/31/2006 $4,026,287 $0 
In Negotiations - GSA issued 
the Contracting Officers' final 
decision and demand letter to 
CACI - ISS and ISS 
representatives on 1/7/2010. 
GSA Finance has established 
a debt collection account for 
this audit. 
A060245F6X07065 
Comstor, Div. of 
Westcon Group N. A.., 
Inc. 
04/30/2007 $0 $0 
In the Investigation Process. 
Under investigation by 
Department of Justice. 
A060196P9X07091 
Tigard Electric, Inc. 08/28/2007 $0 $988,088 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 
A070176Q9X08032 
T-Mobile USA 12/18/2007 $0 $2,456,420 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 
A070168Q6X08057 
MSC Industrial Direct 
Co., Inc. 04/10/2008 $0 $22,294,058 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 
A080084P7X08061 
Kenmor Electrical 
Company, LP 04/29/2008 $0 $312,148 
The contractor has appealed 
the Contracting Officer's 
decision and the audit is now 
in the litigation process. 
A080107Q3X08063 
Superior Protection 
Service, Inc. 05/05/2008 $0 $811,315 
Agreement has been reached 
between OIG and Contracting 
Officer. Negotiations are 
proceeding. 
A070229Q4X08068 
Citrix Systems, 
Incorporated 05/22/2008 $0 $7,376,859 
In Negotiation - Negotiations 
are proceeding between 
Contracting Officer and 
contractor. 
A070095Q3X08073 
GTSI Corporation 06/05/2008 $0 $9,700,000 
Agreement has been reached 
between OIG and Contracting 
Officer. Negotiations are 
proceeding. 
A040224F3X08077 
ADT Security Services, 
Inc. 
06/11/2008 $1,846,647 $0 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 

16 


A080077Q5X08087 
Gartner, Inc. 08/05/2008 $0 $5,753,000 
Litigation in Process - The 
contractor has appealed the 
Contracting Officer's decision 
and the audit is now in the 
litigation process. 
A080151Q7X09009 
SeaArk Marine, Inc. 10/29/2008 $0 $1,835,327 
Negotiations are proceeding 
between Contracting Officer 
and contractor. 
A080001Q3X09006 
SunGard Availability 
Services, LP 10/30/2008 $4,601 $0 
In negotiation. 
A080177Q9X09015 
Tecolote Research, 
Incorporated 12/12/2008 $0 $658,765 
Agreement has been reached 
between OIG and Contracting 
Officer. Negotiations are 
proceeding. 
A080185P9X09016 
Pacific Coast Steel, Inc. 12/16/2008 $0 $2,199,853 
In negotiation. 
A080220P9X09022 
Boyett Door and 
Hardware 01/09/2009 $0 $526,039 
In negotiation. 

17 


GLOSSARY OF TERMS 


The following definitions, based on the Inspector General Act of 1978, as 
amended, 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 finaldecision by management concerning its response to such findings and 

18 


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 torepresent 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 nomanagement 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 onGSA’s appropriated funds. 
• 
Audit reports on which management decisions were made during 
the period: Data pertaining to the number of audit reports on which 
19 


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 determinethe 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. 
20