DCAA Compliance Blog

Your Source for DCAA News and Information for Contractors

ReliAscent® LLC is the only government contract accounting firm that specializes in all aspects of government contracting compliance.  From our DCAA compliant accounting services, to monthly government contract accounting for all government agency awards, contract management & administration, and financial services & planning, our goal is to ensure the success of our clients, and all small business government contractors and grantees.  

In our DCAA Blog, we discuss the latest government contracting news from the Federal Government, the DCAA, and DCMA, as well as promotions offered by ReliAscent, and helpful tools and resources for contractors.

We hope you will visit and take part in the discussions on our blog on a regular basis. If you ever have any questions or would like to discuss how our experts can help, do not hesitate to contact us at any time!  


 

Accounting System DCAA Adequacy

Posted by Mike Anderson on Wed, Jul 06, 2011 @ 05:18 PM

Over the years we have had many inquiries from government contractors about evaluating their accounting systems for adequacy before they actually undergo a DCAA audit.  This actually makes sense in today's environment.  The risks associated with failing a DCAA audit are greater today than they were even 5 years ago.  The DCAA is also less forgiving today than it was 5 years ago and the combination can have a disastrous impact on a small government contractor.  (Actually it can have a bad impact on a large government contractor too).  The risks of failing the audit include delayed payments (cash flow problems can be the "kiss of death for a small business"), reduced  contract opportunities and even barred from further contracting with the government.  So it makes sense to evaluate your system prior to the DCAA evaluating the system, identify gaps in compliance and then fixing these gaps.  Then you can feel confident that when the DCAA does come in to audit the system that it will pass.  Any system evaluation (we call this an Adequacy Audit) should include a look not only at the accounting system but also a look at the written policies and procedures, the timekeeping system, the purchasing system, indirect rate determinating system and the invoicing system.  This simple evaluation and resulting corrective actions could save many government contractors the pain and problems of failing a DCAA audit.  Visit the Tech Biz Adequacy Audit page to learn more.

Topics: DCAA compliance, DCAA audit, Adequacy Audit