PREPARATION FOR DCAA-APPROVED ACCOUNTING SYSTEM
Accounting System Projects
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.
Policy & procedure drafts, tailored to your programs –
plus staff training to make sense of them –
precede implementation of compliant audit trails.
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.