---
kind: "section"
citation: "48 C.F.R. § 30.202-7"
title: "48"
number: "30.202-7"
heading: "Determinations."
url: "https://uscodex.org/cfr/48/30.202-7"
---

# §30.202-7. Determinations.

- (a) **Adequacy determination.**
  - (1) As prescribed by [48 CFR 9903.202-6](/cfr/48/9903.202-6.md), the auditor shall—
    - (i) Conduct a review of the Disclosure Statement to ascertain whether it is current, accurate, and complete; and
    - (ii) **Report the results to the CFAO.**
  - (2) The CFAO shall determine if the Disclosure Statement adequately describes the contractor's cost accounting practices. Also, the CFAO shall—
    - (i) If the Disclosure Statement is adequate, notify the contractor in writing, and provide a copy to the auditor with a copy to the contracting officer if the proposal triggers submission of a Disclosure Statement. The notice of adequacy shall state that—
      - (A) The disclosed practices are adequately described and the CFAO currently is not aware of any additional practices that should be disclosed;
      - (B) The notice is not a determination that all cost accounting practices were disclosed; and
      - (C) The contractor shall not consider a disclosed practice, by virtue of such disclosure, an approved practice for estimating proposals or accumulating and reporting contract and subcontract cost data; or
    - (ii) If the Disclosure Statement is inadequate, notify the contractor of the inadequacies and request a revised Disclosure Statement.
  - (3) Generally, the CFAO should furnish the contractor notification of adequacy or inadequacy within 30 days after the CFAO receives the Disclosure Statement.
- (b) **Compliance determination.**
  - (1) **After the notification of adequacy, the auditor shall—**
    - (i) Conduct a detailed compliance review to ascertain whether or not the disclosed practices comply with CAS and [Part 31](/cfr/48/part31.md), as applicable; and
    - (ii) **Advise the CFAO of the results.**
  - (2) The CFAO shall make a determination of compliance or take action regarding a report of alleged noncompliance in accordance with 30.605(b). Such action should include requesting a revised Disclosure Statement that corrects the CAS noncompliance. Noncompliances with [Part 31](/cfr/48/part31.md) shall be processed separately.

## Notes

### Amendments

[70 FR 11753, Mar. 9, 2005, as amended at 85 FR 67614, Oct. 23, 2020; 86 FR 72971, Nov. 16, 2020]

### Authority

Authority : 41 U.S.C. 1121(b); 40 U.S.C. 121(c); 10 U.S.C. chapter 4 and 10 U.S.C. chapter 137 legacy provisions (see 10 U.S.C. 3016); and 51 U.S.C. 20113.

### Source

Source: 57 FR 39587, Aug. 31, 1992, unless otherwise noted.

### Amendments

[70 FR 11753, Mar. 9, 2005, as amended at 85 FR 67614, Oct. 23, 2020; 86 FR 72971, Nov. 16, 2020]