Department of Energy (DoE)
The Department of Energy can issue contracts, grants or cooperative agreements. Generally, the requirements for an accounting system are relatively uniform (especially when dealing with "for profit" entities). It is important to review your award to determine what applies to your situation.
While a contractor with a DoE SBIR or other type of award may not face the same regulations and compliance requirements as a NASA, DoD or DHS contractor, the DoE has its own requirements normally found in Title 10 of the Code of Federal Regulations. Normally the DoE complies with GAAP and the cost principles found in Title 48 CFR part 31 (otherwise known as the Federal Acquisition Regulation or FAR part 31).
If you have a contract or grant from the DoE, ReliAscent can install a DCAA or FAR Part 31 compliant accounting system, and provide you with outsourced accounting and DCAA audit support.
DoE Audit Support
The DoE requires that any "for profit" entity that receives awards from DoE have either the DCAA or an independent public accountant (IPA), audit their system periodically if the entity expends more than $500,000 (total federal expenditures) in the year. The contracting officer will determine the required frequency of the audits. The audit report must be available to the DoE contracting officer(s) that have awards with the company.
Many companies do not realize that the burden of audit falls directly on the awardee. While this is an allowable expense, it is a necessary expense to companies meeting this Federal expenditure level. ReliAscent can help to set-up a compliant system and can work with the audit agency to make sure the company is found compliant. It is important to note that the awardee may not request an audit from the DCAA (only a contracting officer may request a DCAA audit). The awardee may schedule an independent audit, at their own expense. Audits can be stressful for the unprepared but ReliAscent can take the stress out of the audit.
There are two basic requirements in a DoE audit for the auditor to determine & report:
- If the awardee has an internal control structure that provides reasonable assurance that it is managing Federal awards in compliance with Federal laws and regulations and the terms and conditions of the awards.
- Based on a sampling of Federal award expenditures, the recipient has complied with laws, regulations, and award terms that may have a direct and material effect on Federal awards.