Finding Text
Criteria: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, ?ordinary course of business? would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government for reimbursement. Condition: The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Questioned costs: None. Context: Of the sample of 60, nine of the selections were paid to the vendors more than 30 days from request for reimbursement. Of those nine, five were paid within 30 days of the receipt of the reimbursement from the government. Recommendation: The Organization should review its procedures, and update as necessary.