Preparation for DCAA-approved Accounting System

Mahnke Consulting | Preparation for DCAA-approved Accounting System
Policy & procedure drafts, tailored to your programs -
plus staff training to make sense of them -
precede implementation of compliant audit trails.

Accounting System Projects

February, 2016 - Provide detailed feedback on the package of documents client intends to send DCAA Auditor, in response to request for desk-review background.

January, 2016 - Act as liaison during conference call with DCAA Supervisor, DCMA ACO, DCMA Contract Administrator, the client's Accountant and two client executives. Note several priorities stated by DCAA Supervisor, and later discuss "translation" with client. Discuss client's intended steps and create a list of populations from which DCAA likely pulls sample source documents (timecards, vendor bills, etc.) to review, based on original Accounting System Review findings.

November, 2015 - Develop steps for an (outsourced) internal audit, focused on an up-coming DCAA Follow-on Audit of a client. Conduct a brief, on-site internal audit of documentation showing implementation of recent policies and procedures. Draft a report of findings and recommendations; consider client feedback from informal Exit Conference; make changes to final report, sent to client.

November, 2015 - Review client work and suggest specific corrections to a large cost proposal. Peruse the RFP instructions for the cost proposal; create a completely separate proposal, in the Time and Material (T&M), instead of Cost Plus format. Explain the differences in the T&M proposal and recommend specific changes to guide client to corrected/updated amounts.

October, 2015 - Help a small business client with their new Chart of Accounts, indirect rate structure, and amortization. Explain the need for and placement (section in financial statements) of specific accounts, related to unallowable direct costs and their absorption of indirect burden.

October, 2015 - Read and provide extensive feedback on client-developed policies and procedures. Topics include amortization of Intellectual Property, reversal of accruals, and description of achievements required for independent contractor bills.

September and October, 2015 - Build a workbook with current-year data through August, all formulas, and instructions to maintain going forward, calculating actual labor rates by labor category. Create an easy-to-use worksheet for labor rate projections. Calculate actual Overhead and G&A rates for 1-1-2015 through 8-31-2015; add projections worksheets, including automatically-updating formulas - for use on proposals; and explain how to maintain information, especially the segregation of unallowable direct accounts (for base/denominator rate calculations).

August, 2015 - "Walk" a client (telecommuting) accountant through creating and applying a Portable Document File signature, showing the matching process complete, before recording each scanned vendor bill. Analyze and provide feedback on recorded monthly accrual Journal Entries. Research FAR for alternatives to client-intended accounts related to patents.

August, 2015 - Provide explanations, as the reference source, about the differences plus client-unique issues of Provisional Rates versus (ICE Model) actual incurred cost (AIC) Rates. Provide hyperlink to the Excluded Parties List in the System for Award Management. Offer multiple suggested sources for comparative labor rates, to document reasonableness of Inter-company vendor-bill rates.

July, 2015 - Assist client with formal Responses to DCAA audit report on the Accounting System Review. Indicate customer-specific wording about changes in policies and procedures and creative approaches to complete residual policies and procedures. Draft Contractor Responses and help prepare client for Exit Conference. Act as liaison during DCAA Exit Conference, especially documentation of post-implementation of some new Policies and Procedures.

July, 2015 - Discuss wording for an Inter-company Agreement and Government-expected wording related to FAR 31.205-30 (a)(3) and (b).

July, 2015 - Review and provide detailed feedback on client-management's final draft of policies and procedures. Advise the importance of segregation of duties for the Purchase Requisition and Purchase Order process, as it relates to the matching process for Accounts Payable and payment approvals. Consult with client President and Accountant regarding the allocation of employee fringe benefits between Overhead and General and Administrative (G&A) indirect pools. Help client create a Liability account for use of Vacation accruals. Suggest a sample Chart of Accounts for Unallowables, to guide client to correctly segregate direct versus indirect unallowable costs.

July, 2015 - Develop Timekeeping training, tailored to client. Include direct time versus indirect, and allowable versus unallowable - with multiple, specific examples. Create slides for an online-meeting format training session plus a "take-away" reference handout for participants. At client request, build and grade a multiple-choice test to document staff understanding of the Timekeeping process. Present a two-hour Timekeeping Training session. Create a brief online-survey Evaluation form for training-participants.

July, 2015 - Develop Accounting System training (exclusive of Timekeeping, previously presented), tailored to client. Include receipt-requirements and calculations for Travel Reimbursement, adequately supporting competition or other price-reasonableness for purchases, and documenting receipt of goods and services. Create slides for an online-meeting format training session plus a "take-away" reference handout for participants. At client request, build and grade a multiple-choice test to document staff understanding of the Accounting System processes that most-effect non-accountant staff. Present a two-hour (plus question-and-answer session) on the Accounting System, especially as affected by those outside of Accounting. Create a brief online-survey Evaluation form for training-participants.

May, 2015 - Guide client on correction of actual, calculation of future, and (segregated allowable versus unallowable) use in indirect rates for 401k, health insurance premiums, and Paid Time Off. Help client with response to Government request for information. Review three financial statements; analyze and provide recommendations to correct the Calendar Year-to-Date Profit and Loss by Job.

March, 2015 through April, 2015 - Recommend initial/draft Chart of Accounts for a new QuickBooks General Ledger (G/L). Draft FAR-compliant Accounting System Policies and Procedures with (and instructions for completing) forms - such as Travel Reimbursement. Guide client through Payroll Policy and Procedures revisions, including owner's draws, bi-weekly timesheets and (accrual) timing of each Payroll-transaction record. Participate in conference calls on specific Policies and Procedures, indirect rates, and Internal Controls for a small administrative staff. Using the client's finalized Chart of Accounts, provide sample indirect rate calculations; create sample labor accrual and reversal journal entries; review and help client correct old Payroll journal entries for bonuses and 401k deposits. Evaluate and provide feedback on client-revised Policies and Procedures.

January, 2015 through March, 2015 - Guide client on DCAA "Initial Request for Information." Describe (with FAR excerpts) those IR&D patent and license expenses that are excluded as unallowable. Evaluate client answers on SF 1408, DCAA Survey, and ICO Questionnaire; draft policies, procedures, and related forms toward an approvable Accounting System. Research and support allowability of expenses related to advertising for exports; discuss ways to strengthen Internal Controls - for client's very small administrative staff.

August, 2014 through December, 2014 - Guide emerging small business on timing of company credit card entries, timing of paycheck issuance after receipts of timesheets and after receipt of (electronic) timesheet, certified hours worked. Prorate sample salary-days for new-hires. Perform monthly reviews of monthly General Ledger (G/L) records and provide detailed recommendations for corrections. Verify adequacy of support and provide sample, step-by-step calculations for actual indirect rates and their allocation. Suggest alternate and additional (protective) U.S. Government contract language and add comments to a (pre-awarded) subcontract.

July, 2014 - Conduct the first of several month-end reviews, to ensure that accruals, reversal of accruals, open Accounts Payable, open Accounts Receivable, bank account reconciliations, and other month-end activities were correctly recorded by the accountant. Update monthly workbook of year-to-date indirect rates, using actual dollars.

June, 2014 - Perform a complete clean-up of all current-year transactions in client's QuickBooks General Ledger (G/L). Reclassify cash-out to charge correct accounts; add Accrual Basis records for each month-end; close aging Accounts Payable bills, erroneously paid with "Write Check"; charge correct Jobs for all transactions; correct Payroll Journal Entries, including paycheck deductions and Company expenses; save Memorized Transactions; create Payroll Items; add missing transactions, including Prepaid Assets; and provide a solid basis for future recording, indirect rate calculations, and profit by Job.