The Defense Contract Audit Agency (DCAA) released its Report to Congress on Fiscal Year (FY) 2024 Activities dated March 31, 2025. Consistent with prior years, the report addresses DCAA’s audit performance, recommendations to improve the audit process, industry outreach activities, and key accomplishments. According to the report, DCAA saved $5.1 billion in defense spending, issued 2,465 audit reports, reviewed approximately $599.8 billion in contract costs, identified more than $15.9 billion of audit exceptions, and achieved a $7.20 to $1.00 return on investment (ROI). For comparison purposes, in FY 2023, DCAA reported net savings of $3.5 billion, issued 2,314 audit reports, reviewed approximately $254 billion in contract costs, identified more than $5.4 billion of audit exceptions, and achieved a $5.10 to $1.00 ROI. It is notable that the 2024 figures include estimates for the impact of business systems and Cost Accounting Standards (CAS) audits, which have not been included in recent years’ reports.
 
Similar to prior years, in FY 2024, the sustention rate on incurred cost audits remained low compared to most other audit categories at 31.4%, which represents a slight reduction from the 31.9% sustention rate achieved in FY 2023.
 
Interestingly, the ROI across the audit categories varied significantly. For example, the ROI for forward pricing audits was $11.70:1, and the ROI for incurred cost audits was $3.50:1. Of further interest, the ROI for systems, CAS, and Truth in Negotiations Act audits increased from $0.30:1 to $11.3:1 between FY 2023 and FY 2024.
 
Other notable highlights from DCAA’s FY 2024 Report to Congress include the following DCAA performance metrics, achievements, and initiatives:

• Awarded task orders to independent public accountants to perform 121 incurred cost audits
• Continued engagement with industry groups
• Streamlined the incurred cost audit program (resulting in a two-month reduction of average audit time)
• Advanced DoD’s data analytics and artificial intelligence adoption strategy
• Began to consolidate offices and restructure the organization

DCAA’s Report to Congress for FY 2024 can be found here.