AÂ Basic DCAA Checklist for the Pre-Award Audits: Setting up a Chart of Accounts to segregate Direct, Indirect and Unallowable Costs Job Cost Accounting Indirect Cost Pools and Allocation Bases Indirect Rate Computations Timekeeping System and Labor Distribution Requirements Unallowable Costs A Basic checklist for Post-Award and Internal Control Audits: â€¢ previously identified differences; â€¢ significant changes in management or staff; â€¢ FAO familiarity with the audit type; â€¢ recent guidance or audit program changes; â€¢ assignments with a low number of hours expended and […]
Category Archives: DCAA FAQ
Most accountants and auditors for the DCAA are college graduates, hundreds of them have advanced degrees, and over half of them (approx. 1,700) are Certified Public Accountants (CPAs). DCAA jobs are posted on USA Jobs.
DCAA (Defense Contract Audit Agency) was created by act of Congress in 1965 to perform all necessary contract audits for the Department of Defense (DOD). Their mission also includes providing accounting and financial advisory services to all DOD components in connection with the negotiation, administration and settlement of contracts and subcontracts. Today DCAA employs more than 3,600 auditors and maintains more than 350 branches and sub-offices around the world. In recent years, DCAA has also provided its services to many other Government agencies on a […]
The following rates have been authorized for all work performed by DCAA under the Memorandum of Agreement. FY09 DCAA Hourly Billing Rate: $93.98 FY09 DCAA Reimbursable Adder Rate Factor: 22.0%
Over the years the federal government has determined that certain costs cannot be allowed in prices, cost reimbursements or settlements under contracts with the US Government. The government is unwilling to pay for these costs as direct charges to federal government contracts or through indirect expense pools applied to federal government contracts. A company is not prohibited from incurring unallowable costs, but they cannot be recovered either directly or indirectly under federal government contracts. To manage unallowable costs, separate accounts must be established for these […]
Find out the top 10 reasons why the DCAA will audit you. Try to avoid these! 1. Inability to provide document traceability 2. Allocations not posted to Contracts or unavailable in standard reports. 3. Failure to Follow the DCAA recommended Timekeeping Policy 4. Incompatibility of records, often from inclusion of unallowable costs 5. Revisit the DCAA Contract Audit Manual (CAM) relative to internal controls. The CAM is the DCAA playbook and available free on the DCAA website. 6.Now would be the ideal time to identify […]
The DCAA Contract Audit Manual includes all of the DCAA’s guidelines. It is an instruction book for auditors who work on behalf the government. It discusses standards for auditing, how to plan for an audit, cost accounting standards, auditing of estimates and proposals, statistical sampling techniques for audits, who can obtain audit reports, how theyâ€™re distributed and what they should look like. DCAA Contract Audit Manual
The DCAA is designed to perform contract audits for the Department of Defense and provide accounting and financial advisory services regarding contracts and subcontracts to all Dept. of Defense components. Also, the DCAA provides contract audit services to other Government agencies as needed. DCAA products and services include: Preaward Contract Audit Services (Price Proposals, Preaward Services, Forward Pricing Labor and Overhead Rates) Postaward Contract Audit Services (Incurred Cost/Annual Overhead Rates, Truth in Negotiation Act Compliance, Cost Accounting Standards Compliance and Adequacy, Claims, Financial Capability) Contractor […]
Revisit the DCAA Contract Audit Manual (CAM) relative to internal controls. The CAM is the DCAA playbook and available free on the DCAA website. Now would be the ideal time to identify and confront any material organizational or operational weakness in your accounting system. If management is still skeptical, turn around and show them the target on your back in the form of DCAA guidance. Address any previous finding from auditors. Any subsequent auditor will likely review these, as well. Prepare for a more confrontational […]
There is a Headquarters Office and five regional offices which manage 300 Field Audit Offices and suboffices throughout the US and abroad. The Headquarters is located at: 8725 John J. Kingman Road, Fort Belvoir, VA 22060, which is near Washington D.C.