PREPARATION FOR DCAA-APPROVED ACCOUNTING SYSTEM
Accounting System Projects
December 2019 and ongoing – Provide examples of restructured client-QuickBooks’ Lists (Chart of Accounts, Customers, Jobs, Vendors, etc.) and discuss examples and recommendations. Explain the reorganization of the Chart of Accounts to accommodate unallowable or unbillable accounts. With examples, demonstrate recording a Job for each transaction row in the Profit and Loss section.
July 2019 and ongoing – Suggest compliant methods of recording all hours worked and re-investment from CEO (as employee) into for-profit company (as owner). Discuss several cash-flow topics and solutions. Review and provide feedback for supportable monthly vouchers and matching general ledger records.
Policy & procedure drafts, tailored to your programs –
plus staff training to make sense of them –
precede implementation of compliant audit trails.
November through December 2019 – Review and recommend revisions to client’s initial submissions of Incurred Cost Electronic (ICE) actual incurred indirect rates. Draft a request to DCAA for successfully postponed submission due dates. In ICE models, trace tab H amounts to financial reports and discuss potential audit-concerns with client.
July through September 2019 – Guide a non-profit contractor through the account-by-account buildup of an Indirect Cost Rate (ICR) with a unique spreadsheet-workbook. Use understandable language and examples to ensure accounts, such as Office Supplies, are accounted for consistently and unallowable costs, such as those for Fundraising, are recorded as unallowable. “Walk” through ICR calculations and allocations. Tailor drafts from templates for most-needed Policies, Procedures, and related (non-accountant targeted) Forms.
August 2019 – Sub-consult to colleague on behalf of her client regarding 1) preproduction costs, 2) quantification of time-period of leased equipment, and 3) support for related-parties transactions. Give clear definitions and examples.
July 2019 and ongoing – Recommend changes to pre-award submissions (questionnaire, appendices, etc.) supporting the budget or cost proposal. Draft a replacement appendix for travel and explain challenges. Suggest ways to better support Source Justification and Price Justification of purchases. Suggest compliant methods of recording all hours worked and re-investment from CEO (as employee) into for-profit company (as owner). Discuss several cash-flow topics and solutions. Use understandable words and examples to ensure general ledger allowable Job costs, by account, equal cost-reimbursable billing – incurred for each month, regardless when paid. Participate in a GoToMeeting to explore the first billing, especially matching budgeted versus billed accounts with the general ledger. Recommend GovCon defenses for potential customer concerns.
July through September 2019 – Guide non-profit contractor toward decisions about either restructuring Accounting System for actual Indirect Cost Rate (ICR) or continuing acceptance of de minimis rate. Proposals and billings for cost-reimbursable contracts do not recover all allowable indirect costs. Discuss account segregation between direct and indirect costs plus unallowable costs, such as fundraisers, unique to non-profits. Build an ICR workbook of general ledger amounts. Segregate direct, indirect, unallowable direct, and unallowable indirect costs. Use those costs for an allowable pool and applicable base to calculate an ICR for Year-To-Date information provided. Show allocations to Jobs. Participate in GoToMeeting with client regarding the ICR calculation and allocation. Discuss Policies, Procedures, and Forms for which the client requested templates. Explore liability for not meeting contract Terms and Conditions (direct versus indirect general ledger records) in compliance with OMB Circulars and FAR.
February 2019 through April 2019 – Guide a client toward a DCAA-passable Accounting System. Evaluate general ledger support. Recommend revisions to the Chart of Accounts. Analyze current policies and procedures – primarily focusing on stronger Internal Controls – for limited, small business resources. Recommend specific additions and deletions with explanatory comments. Write a summary report of (separately) significant and notable review-findings. Using templates, tailor ten draft policies and procedures to address gaps. Explain Accounting System Review process and recommend a priority-order for addressing findings. Explain labor and labor-related month-end (accrual) adjustments and their timing. Discuss the methodology for calculating and allocating indirect rates. Conduct a virtual meeting with the client. Discuss the recommended wording changes to the policies and procedures, adequate documentation for travel expenses, and the mapping of indirect pools and bases.
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.
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.