PREPARATION FOR DCAA-APPROVED ACCOUNTING SYSTEM
Accounting System Projects
December, 2017 – Create “Empty Shell” General Ledger for compliant Chart of Accounts and Job Cost accounting. Include specifically unallowable accounts with FAR references in descriptions. Delete all “pass-through” Items. Break out new P&L accounts among applicable sections, including direct versus indirect unallowable accounts. Enter Customer and Jobs for internal costs and for samples. Review and edit “Lists,” “Job Types,” and “Customer Types.” Verify rows and columns in P&L by Job report. Convert Enterprise G/L to Premier G/L, exporting and importing .iff files and verifying, editing, or deleting specific accounts, items, etc. Tailor template Forms and related Policies and Procedures to easily convert transactions into G/L records.
Policy & procedure drafts, tailored to your programs –
plus staff training to make sense of them –
precede implementation of compliant audit trails.
June & July, 2017 – Guide client through Pre-award Survey, SF 1408. Provide feedback, especially DCAA “hot button” words that might lead to misunderstandings. Draft some re-writes, especially for the Cost Allocation Methodology. Discuss Bid and Proposal (B&P) and how it folds into the General and Administrative (G&A) pool; Paid Time Off (PTO) accruals, and the indirect rate structure. Set up a template workbook tailored to convert client QuickBooks (QB) Profit & Loss by Job report into indirect rates calculations and absorptions. Guide client on Policies and Procedures (P&P’s) and internal controls. Review P&P’s for gaps. Train client in support and General Ledger (G/L) recording transactions of all kinds, including employee reimbursements; “hard” close; and ICE Model. Sample transactions for a mock audit and provide feedback. Draft wording for a memo to DCAA. Review and provide feedback on the Organization Chart with Job Descriptions.
February through April, 2017 – Review and recommend an indirect rates template; recommend revised formulas, added “check totals” for verification. Train client on unallowable G&A labor charges, absorption of indirect costs on direct unallowables and overruns. Explain and give examples of allowable, objective employee bonuses.
December, 2016 through March 2017 – Recommend specific supporting documents for some types of transactions – especially the record (in the G/L) of travel expenses. Address client concerns about “like circumstances” commercial Independent Research and Development in a company-wide indirect pool.
August through November, 2016 – Conduct a G/L review and recommend specific improvements. Review and recommend supporting documents for G/L transactions. Draft P&P’s from templates. Create an indirect rate template based on the client’s Chart of Accounts; train client on use. Discuss owner-salary options. Create an empty “shell” G/L, Chart of Accounts, etc. for a new subsidiary of the client. For a sample period, calculate labor and recommend Journal Entries to record Labor. Discuss unallowable costs. Train client on proration of Direct Labor among separately-billed Contract Line Item Numbers. Set up and calculate transactions for paycheck amounts and accounts for three new-hire wage earners plus one new exempt, salaried employee. Train client on QuickBooks functions.
March through June plus October, 2016 – Recommend specific Journal Entries to eliminate double-counting Partner salaries, to accurately apply G&A.
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.