One of the most daunting tasks for small government contractors in being able have their accounting systems determined to be adequate by Defense Contract Audit Agency (DCAA). Per DCAA, "the pre-award accounting system survey is an audit to determine the acceptability of a contractor's accounting system for accumulating costs under a prospective Government contract". Without a good bill of health from DCAA, contractors are limited in the types of contracts that they can be awarded.
Our process for preparing you for a DCAA pre-award audit, involves 3 steps:
1. Setting up accounting software
We redesign your chart of accounts and set up components in order for you to properly track costs. We turn on key features in your software necessary for complying with government contract requirements. Ninety-percent of our clients use QuickBooks and the other ten-percent use DELTEK and Peachtree.
2. Setting up indirect cost rate structure
We assist you in determining an indirect cost rate structure that is specific to your small business. We assess your business operations, locations, and business units to develop cost allocations that make your company competitive.
3. DCAA compliant accounting policies and procedures
An adequate accounting system is more than just the accounting software. You business has to have policies and procedures that ensure controls are in place to keep your accounting and financial reporting in compliance with Federal Acquisition Regulations.
Even after obtaining the initial approval, you may become subject to a second accounting system audit, called the Post-Award audit. In this audit, DCAA is not only determining whether your accounting system can accumulate costs, but that the billing to and the purchasing for government contracts are adequate.
|
