POLICIES AND PROCEDURES
Formal policies and procedures are expected by DCAA. They are written, apply to the organization as a whole (not just to Jobs with U.S. Government funding), and show an original, dated, signature from applicable management. They may be photocopied or scanned for distribution, and show some method to supersede old and replace with new versions, including clear implementation dates.
In addition to policies and procedures, DCAA expects an Ethics Statement (or policy) and a Mission Statement. The Ethics Statement describes the overall attitude and integrity that executive management flows down to all staff, and state that prohibited actions have consequences. The Mission Statement pin-points the main purpose for the existence of the organization.
The Accounting System policies and procedures include three key topics, among many. These three are:
- Travel Expenses
- Business Meetings
All hours (including unpaid overtime) are recorded, timely, and certified by the employee plus another person within the organization. See the article, Legacy of a Timecard for more information. Lodging plus Meals and Incidental Expenses are calculated using per diem rates. Reasonableness of other expenses might be documented with competitive prices. The cost of Business Meetings ranks as important because it would take place, whether on travel or not, so might replace a meal at the per diem rate; this typically increases allowable costs.
Having guided clients to many approvable systems, we built templates that can be tailored to a particular organization. Drafts are edited or approved by management. Our template forms ease adherence in actual practice.
Shown below is a partial list of topics of policies and procedures, for which we tailor templates to specific clients. If the accounting records are in compliance with regulations, that information can be easily converted to customer invoices. To address concerns of DCAA, a separate policy and procedures on Billings (i.e., invoices to customers) might detail price differences among contract types (e.g., Fixed Price, Cost Plus Fixed Fee, etc.).
- Accounting for Unallowable Costs
- Business Meetings
- Business Meeting Form
- Independent Contractors
- Paid Time Off
- PTO Approval Form
- Policy-read Certification Form
- Relocation Agreement
- Travel Expense Reimbursement
- Travel Reimbursement Form
- Vendor Payables