Defense Contract Audit Agency Compliant Accounting System - (DCAA)

Have you heard that as a government contractor that your business must have an accounting system that is approved by the Defense Contract Audit Agency (DCAA) to do business with the U.S. Department of Defense.

No such requirement exists.

The Defense Contract Audit Agency does not certify accounting systems, They accept accounting systems.

The Defense Contract Audit Agency, under the authority, direction, and control of the Under Secretary of Defense (Comptroller), is responsible for performing all contract audits for the Department of Defense, and providing accounting and financial advisory services regarding contracts and subcontracts to all DoD Components responsible for procurement and contract administration.

These services are provided in connection with negotiation, administration, and settlement of contracts and subcontracts.

For more information on government auditing see below

Richardson Branch Office- 03531
707 East Arapaho Road Suite 220
Richardson, TX 75081-2289
Assigned zip code: 71913
Find your assigned DCAA Office

DoDAAC: HAA444
Phone No: (214) 655-3750
Fax No: (214) 655-3820
 

Set up of a DCAA compliant accounting system using QuickBooks.  http://fast.faa.gov/docs/forms/form.html

Organize the company chart of accounts to segregate direct costs from indirect costs, organize indirect costs into cost pools, and segregate unallowable costs.
Set up the company's jobs in QuickBooks
Set up payroll item to properly distribute labor to intermediate and final cost objectives
Set up service items so that categories of billable direct labor can be tracked
Set up Indirect Cost Allocation Tool (ICAT™) so indirect rates can be calculated and indirect costs can be allocated to contracts
Conduct user group discussions so attendees can share their experiences and ideas

References

http://www.dcaa.mil/sap/17740_AP_Post_Contract_Award_Acct_Sys.pdf

1. CAM 6-1007.3, “Criteria for Adequate Billing Systems – Nonmajor Contractors”
2. FAR 31.2, “Contracts with Commercial Organizations”
3. FAR 52.216-16, “Quarterly Limitation on Payments Statement” (FPI contracts); FAR 52.232-20, “Limitation of Cost;” FAR 52.232-22(b), “Limitation of Funds.”
4. CAM 14-300, “Contractor Financial Capability Audits and Reporting”

 

 


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Government Contracts

Government Accounting System

DCAA Audit Guidance and Audit Management Guidance Memorandums for Regional Directors.

Pre-Award Survey of Prospective Contractor
Form# SF-1403

Pre-Award Survey of Accounting System
Form# SF-1408

Pre-Award Survey of  Financial Capability
Form#  SF-1407

Pre-Award Survey of  Production
Form#  SF-1405

Pre-Award Survey of  Quality Assurance
SF-1406

Pre-Award Survey of  Technical
Form# SF-1404 

Procurement forms for download
 

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