Briefly described our services and capabilities offered to current and prospective Government contractors.

• FAR, DFAR, CAS compliance

• SBIR and STTR Grants compliance with guidance in budgets, accounting and reporting requirements

• Implementation and execution of Internal controls/Policies & Procedures

• Compilation of cost proposals (e.g. Incurred Cost submissions (ICE), FPRA, Contract proposals, Provisional billing rates, rates monitoring), Bid & Proposal support

• Indirect rate model, cost model/structure (Pool vs. Base)

• DCAA compliance (cross-functions/divisions, processes, Quickbooks, accounting software customization), pre-award, post-award audits

• Mock audits; audit liaison, risk-analysis, transaction-testing

• Billing: WAWF, Contract modifications, interim/final voucher billings

• DCAA audit preparation, contract-closeouts, employee trainings, liaison representative, negotiations support

• Quickbooks setup (e.g. charts of accounts, cost-tracking)

• Q&A support

• DCAA attestations: billing reviews, terminations, vouchers, timekeeping, purchasing reviews, CAS, financial capability

We are able to work with all types of contractors, varying in accounting software, size, industries, processes, services/products-oriented, business models, etc. – Our method relies on proper (i) Implementation of accounting systems – segregation of direct, indirect and unallowable costs, pooling of indirect costs, proper job costing (ii) Adequate policies and procedures & internal controls and (iii) Employee training.  Feel free to inquire about other areas of service we may have missed.  

• Mock audits.  Performed on-site; primarily for transactional-testing to test for allowability.  “Gate-keeper” Mainly screens unallowable costs per FAR, DFAR regulations.  Assess areas of high-risk and thoroughly examines supporting documents (invoices, POs, bank statements) for compliance.  Test sensitive accounts to ensure compliance.  Performed primarily for the Incurred Cost audit. Also, tests for effectiveness, efficiencies and implementation of policies and procedures – related to the testing of Reasonableness for claimed costs and for proper documentation requirements.  Purpose is to mimic external audits to minimize significant findings.  Test sample and extrapolate to universe – utilize random or judgmental sampling, depending on various factors.  Audit Results will describe the Purpose, Source, Scope and Conclusion of the audit.  Provide recommendations for areas deemed to have weaknesses, if necessary. Related audits: Incurred cost, Post-award, Forward Pricing, Terminations.

• Indirect Rates structure analysis.  Can be performed off-site.  Desktop-sharing and emails can be utilized to achieve objectives.  Export/import pertinent Reports, Schedules and supporting documents extracted from accounting system.  Evaluate Pool/Base structure, to ensure cause/beneficial relationship exists. Evaluate weights between pool and base – i.e. are the trends consistent between the pool and base items? Evaluate individual pool and base line items for proper categorization amongst indirect rates (G&A, Overhead, Fringe, Intermediate rates).  Check for homogeneous pools/base.  Recommendations for more accurate and transparent indirect cost allocation (top-level, sub-level, detailed-level), possible suggestions for intermediate rates, cost centers; addition or reduction of indirect rates.  Identify unallowable pool items; Ensure bases are properly burdened by rates; obtain a pool and base which accurately depicts business processes.  Analysis is imperative, as indirect rates are deemed integral cause for misallocation of costs. Related audits: Incurred cost, Forward Pricing, Provisional Billing rates, Pre-award Accounting.

• Interpretation of FAR, DFAR, CAS and Other Government Regulations.  Can be performed off-site, via phone and emails.  Assist in clarifying Government Rules and Regulations.  Example: Marketing – What guidelines need to be met for marketing expenses to be deemed allowable? (FAR 3.205).  Assist in creating and implementing policies, procedures and internal controls to identify unallowabes – train employees and provide Q&A support.  Important for minimizing “scrub” at year’s end for unallowable costs.  Cost Accounting Standards (CAS) – Train employees to be able to identify different cost-types (R&D, Consulting, Subcontracts) and segregate directs and indirect costs – for proper data-entry into Accounting system; for proper cost-charging by Purchasing department/Accounts Payable, proper time-charging by employees, and to set criteria for oversight and supervision purposes.  Also, provides guidance in adequate and sufficient documentation requirements for proposed cost or pricing data.  Related audits: ALL

• Systems compliance per Cost Accounting Standards (CAS) .  Can be performed off-site.  Includes the following: Accounting System, Timekeeping & Labor charging, Purchase & Existence Consumption, Estimating system, Billing System (Interim & Final vouchers).  Main system audits performed by DCAA are Accounting System, Timekeeping & Labor charging and Purchasing System/Subcontracts to cover the major costs elements of direct/indirect labor and materials/equipment.  Give guidance on the proper Accumulating, Estimating, Billing and Reporting of labor costs – consistent with CAS.  Assist in tying contractor’s claim, General ledger/job cost (labor costs) to reports such as labor distribution, and timesheets.  Provide guidance in modifying accounting system to achieve proper pool allocation and job costing processes for the purpose of obtaining cost system with the proper flow-down from transaction-detail, to ledger, to job cost ledger, to pool & base items and exclusion of unallowable costs.  Provide guidance in creating an adequate Charts of Accounts with the proper mapping of transaction “types” and capabilities of cost-tracking.  In addition, the proper categorization of major cost elements (labor, materials, subcontracts, other direct costs), Evaluate Cash vs. Accrual practices, GAAP compliance.  Integrating Accounting system with external modules while maintaining appropriate cost accounting.   Mergers & Acquisitions accounting/cost impact.  Purchasing System – Train to properly categorize purchased materials/equipment/services; define criteria for categorizing purchases; provide characteristics of direct and indirect costs.  Implement strong, flexible processes consistent with FAR & CAS regulations.  Billing Systems.  Provide recommendations on best approach for billing processes to have current, accurate and efficient billing system – related to budgeting, forecasting, estimating practices.  Related audits: ALL

• General Support & Misc.  Q&As, Contract pricing, Cross-referencing, Documentation requirements, Audit walk-throughs. Quick-books compliance.  Audit liaison/representative.  Contact Us