2xxxx or xxxx million of MPR’s income is from Federal government contracts andsubcontracts. MPR’s remaining xxxxx million of income is generated from sales tocommercial entities. NSF awarded MPR a total of $10,745,007 in contracts between FYs2001 to 2006. MPR claimed costs totaling $6,572,140 under contract nos. SRS-0244879,SRS-0420325, and DOB-0133044 for FYs 2001 to 2004.
Summary of Audit Results
In its audit of MPR, Inc., DCAA Southern New Jersey Branch Office found thefollowing:
Indirect Costs Rates
: The DCAA auditors determined that, except for the adjustmentssummarized below MPR’s proposed indirect cost rates for FYs 2001 through 2004 areacceptable. The following is the summary of questioned indirect expenses for FY 2001through FY 2004.The DCAA auditors questioned a total of $43,644 xxxxxxxx of the total xxxxxx millionclaimed in the overhead expense pools for FYs 2001 through 2003 (i.e. $30,667, $5,584and $7,393 was questioned for FYs 2001, 2002, and 2003, respectively). For FY 2001,$31,467 xxxxxxxx of the total xxxx million claimed was questioned in the G&A expensepool and $8,016 xxxxxxxxxxx of the xxxxx million claimed was added to the G&A base.For FY 2004, $31,779 xxxxxxx of the total xxxx million claimed was added to the G&Atotal cost input base and $8,115 xxxxxxx of the xxx million claimed was questioned fromthe overhead expenses.Specifically, $43,644 in the overhead expense pools for FYs 2001 through 2003 werequestioned primarily because of unallowable costs claimed for outside services, travel,subsistence, license fees, employee morale and miscellaneous expenses; duplicate andmisclassified miscellaneous expenses; and a misallocation of indirect costs to anaffiliated MPR company. The auditors questioned $31,467 of the FY 2001 G&Aexpense pool because of unallowable travel and other costs; unallowable bid and proposalcosts which resulted due to adjustments of the claimed and audited overhead burdenrates; and adjustments of overhead expenses related to misallocations of indirect costs toMPR’s affiliated company. The FY 2001 G&A base was increased by xxxxx because of reclassified food, beverage and printing costs and the misallocation of indirect costs to anaffiliated MPR company. For FY 2004, xxxxxxx was added to the G&A expense pool toaccurately reflect immigration expenses and $8,115 was questioned in the of the FY 2004overhead base because of unallowable license fees, travel, subsistence, recruiting, andmiscellaneous expenses and unallocable outside legal services and travel costs.. . .A summary of proposed and recommended indirect cost rates that resulted from the auditcan be found in Attachment 1.
: The DCAA auditors determined that, except for the qualifications