Cost Accounting Standards Board

Pursuant to a congressional request, GAO reviewed the Cost Accounting Standards Board’s operations, focusing on: (1) its progress in resolving cost accounting issues; and (2) the adequacy of its staffing levels. GAO found that: (1) since 1990, the Board has made minimal progress in resolving important cost accounting issues; (2) the Board has only completed 3 of its 12 projects, 2 of which dealt with internal organizational and operational issues; (3) the Board’s timeliness in resolving cost accounting issues has been difficult to measure because of the deliberative nature of its work; (4) the Board’s ability to expeditiously complete ongoing projects, begin critical projects, and establish timeframes and milestone dates for ongoing projects has been hindered by inadequate staffing, planning, and project management; (5) government and industry officials believe that the Board has been slow in issuing authoritative guidance and that its staffing is inadequate; and (6) the Board needs to improve its strategic planning and project management if it is to fill existing gaps in cost accounting standards.