The Defense Contract Auditing Agency (DCAA) requires a lot of reporting! For example, DCAA reporting requires that employee work hours be segregated from other areas of the business. If there are any changes to timesheets reports must show proper authorization and that the payroll department or personal cannot change or control employee hours.
The DCAA also wants procedures and processes that can be checked and verified to ensure there have not been any violations to the timesheets or fraud and waste. Additionally, reports on timekeeping that thoroughly outline allowable and unallowable costs and direct and indirect cost that are identifiable as well as traceable.
As you can imagine the DCAA wants to know everything and wants to know that you have a system in place to cope with their demands and expectations. The above is just a taste of the reports that are demanded. However, do not worry there are steps you can take to best prepare your company to meet the DCAA reporting demands.
First, make sure your accounting software is DCAA compliant and properly meet the demands of the DCAA. There are several programs available, but choose one that is able to handle more than one contract at a time and offers a DCAA policy and procedural manual built in. Second, hire a DCAA consultant that can prepare and lead you through all the reporting measures. These consultants can help you navigate through the sea of expectation that the government has set forth for those seeking to be one of their contractors. Additionally, DCAA contractors and both help you choose an excellent DCAA compliant software program, they can program the software according to DCAA demands.
Using DCAA software and hiring a DCAA compliant will stop you from pulling your hair out when dealing with government demands. Moreover, such actions will leave you and your managers doing more productive and focused work that will allow you to perform your contract to the highest possible standards.