Many of the SMS enterprises have a chance of being
contracted with the government tenders and the contracts offered. Various
stages involved in this process are being analyzed by the Defense Contract Audit
Agency (DCAA). A lot of research and
examination is involved while setting up these contracts to be offered to the
potential candidates so that they can favor them to accomplish the goals that
are set by the organization.
The certified DCAA do not support job cost accounting
software packages. In fact they support contractor job cost accounting
practices in conformity with Federal Cost Accounting Standards to ensure that
they meet up the required set standards. Though you have gained enough
knowledge about the system and the process that takes place, but I would persuade
you to review for the better understanding with regard to your business system.
Maybe you have learnt that CAS costaccounting standards is acquiescent job to estimate cost accounting effects if your
business structure, your wide array of planning
for indirect rates along with your
general ledger, overhead and G&A structure. You might know that Defense
Contract Audit MD would like to review your government contracts accounted for
in an individual blog cost center from
your commercial toil and that there are certain reserved costs that cannot be included directly or indirectly to
government contracts as per the polices of the contract.
DCAA look over the Proposal audits on your cost proposal if Procurement Contracting Officer (PCO) plea
to the DCCA and validate your direct and indirect rates in adjacent to your
wide categories including your labor pricing, conditional hire agreements,
retailer quota, subcontractor proposals and all other categories linked to the cost volume of the
proposal. All the observed analysis is then taken to PCO for further
calculations. No outlook is presented on the merit of the pricing, only that it
has been accepted in a long-range plan or a vendor or subcontractor quota and
it is exact.
DCCA audit is on live data from your billing method. It is generated
by your tendering a progress payment under an organization, fixed price
contract.
The DCAA auditor will
get the audit plea from the contracting activity and will ask to check the entire
categories of job cost records in your accounting system for earned cost on the
fixed price contract and tie those accounts out to the progress payment claimed
amount that is usually 85-90% of the incurred cost to date. Records audited are
at the time card and outflow report level, purchase orders, travel coupons and
any other transactions that are booked and billed in your accounting system to
the fixed price contract. They have all the back up behind to trace any
document at the time, when it is needed. DCCA and CPA in Virginia is well known to perform all these functions in
authentic and accurate manner hence increasing the profitability of the firm
and achieving the desired aims.
