The End is Near: DCAA Projects End of Incurred Cost Backlog by FY 2018

The Defense Contract Audit Agency (DCAA) recently made public its Fiscal Year 2017 Report to Congress, which, among other things, provides an update on incurred cost audits. According to DCAA, it is “on track to eliminate the backlog by the close of FY 2018” as it now has “under 3,000 incurred cost years in [such] backlog….” However, it is important to remember that DCAA does not consider an audit backlogged unless it is “older than two fiscal years.”

The report also covers other aspects of incurred cost audits (e.g., sustained audit exceptions), which are discussed more fully in our blog post on the topic.