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The DCAA and You

This section addresses topics including, Types of Audits and Interacting With Auditors

Lets first look at some basic items of interest and concern to the DCAA:

General Audit Interests  

  • All activities related to proposed or incurred costs of government contracts
  • Financial Policies, Procedures, and Internal Controls
  • Opportunities for contractors to reduce or avoid costs
  • Contractor Compliance
  • Contractor Self Governance

Major Areas of Concern

  •  Accuracy and reasonableness of cost representations
  •  Financial capability
  •  Policies and procedures
  •  Contractual provisions having significance
  •  Internal control systems
  •  Management policies

More here on why they matter!

 

 

 

 

 

 

 

Articles of Interest

  Assigning Fringes as Direct or Indirect
Inquiry: Paul, I just reviewed part of your presentation to the audience at the American Legion.  I have a concern.  Your Indirect Costs include Fringe Benefits and Payroll Taxes.  In my experience, I assign them differently.  Is there a problem?

Response: Either way could be okay, as long as the method results in a fair and reasonable assignment of the costs to final cost objectives (contracts) AND the method is consistently used.  But let's look a bit deeper......
  Fast G&A and Fringe Calculation!

Inquiry: Hi Paul, At the present time DCAA is in the process of auditing our G&A and in directs.   If you have any examples of how we calculate fringes, it would be helpful.  They seem to think we are low on our fringes.

Response: We do have an electronic file (e-file) that should help you.  Many others have used it as a template to get a quick look at "what might be".  They replaced the sample numbers with their own and the spreadsheet calculated their rates.  It is very inexpensive!  Here is where to go.....

 
  Incurred Cost Inquiry: Travel & Client Expenses - Are they B&P or G&A cost?

INQUIRY: Hi Paul,  Can you explain the difference of putting travel and client expenses into B&P versus G/A?RESPONSE: B&P (Bid and Proposal) expenses for travel and client related expenses are typically for costs incurred during the Proposal Phase of responding to any type of solicitation, RFI, RFQ, etc.

Similar type costs would typically go into G&A when they are Not For B&P/Proposal type activities but are for the General and Administrative activities of the company.
  DCAA Checklists You Should Never Be Without

Are you a Prime or Subcontract doing business or hoping to do business with the government?

Well, there are several important checklists you should have in your Tool Chest, alongside the tools we provide.  There are others, but we must start somewhere.  And they’re free!   

Really Free? Well, since your tax dollars paid for them, “technically” they aren’t free!
 
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