DCAA COMPLIANCE BLOG

Your Source for DCAA News and Government Contracting Information 


 

It's September, do you know where your indirect rates are?

Posted by Mike Anderson on Tue, Aug 24, 2010 @ 05:05 PM

Many of you may remember the TV commercial many years back where the announcer said "Its 10:00pm.  Do you know where your children are?".  The idea was to focus parents attention on their children in the formative ages.  The same might be said right now to government contractors: "It's September, do you know where your indirect rates are?".  The parallels here are astounding.  The premise on the parenting message is that if you as a parent don't know what your children are doing at this hour of the day, you may have a nasty surprise when they get caught.  In the government contracting world there could be similar consequences.  For instance, if your rates are not following your approved rates you could be faced with giving the government some money back at the end of the year or the end of the contract.  If you did know where your rates were, how would that change anything you say?  Well, if your rates are running too low, there is still time left in the year to spend the indirect money that was originally budgeted in order to bring the rates back into line before the end of the year.  The longer you wait, just like postponing writing that term paper, the more difficult this will be to bring your rates back into line.  Now is a good time to look at your indirect rates, compare them to your approved billing rates and take action to prevent unpleasant surprises at the end of the year.
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Topics: Indirect billing rates, DCAA accounting, government cost accounting


Navigating FAR and "late payments"

Posted by Mike Anderson on Mon, Jun 07, 2010 @ 07:00 AM

It always amazes me to hear about small business entrepreneurs who are successful in receiving SBIR grants or government contract(s)  but suddenly have difficulty in collecting money or continually have late payments from the government.

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Topics: FAR, Government Contract, SBIR, DCAA accounting


Looking for a Deltek GCS Expert

Posted by Mike Anderson on Tue, May 11, 2010 @ 11:55 AM

The good news is that Tech Biz is growing.  As a result, we have a need for someone with experience in Deltek GCS software.  We ideally would like someone with extensive experience in the software including not only operating the software but also in installing the software.  Obviously, operational knowledge is primary and installation can easily be learned if needed but we would prefer to not have to go through this training if we can avoid it.  Ideally we would like this person to have a degree in accounting and experience with operating government accounting systems including determining indirect rates, extensive knowledge of FAR, knowledge of GAAP, knowledge of timekeeping systems and other government accounting requirements.  It would be nice, but not necessary, if this person were a registered CPA and/or a former DCAA auditor.  I know this is asking a lot, but here at Tech Biz we pride ourselves in being the best.  If you fit this description, or know someone who fits this description, then please contact either Dave Donley or Mike Anderson immediately. 
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Topics: Tech BizSolutions, DCAA accounting, Deltek, Deltek GCS Premier


ICE Reports for Government Contractors

Posted by Mike Anderson on Wed, Mar 17, 2010 @ 01:33 PM

Is there anyone out there that relishes preparing their Incurred Cost Submissions?  Does this seem like your personal income taxes on steriods?  Also, does everyone know when their ICE reports are due?  We all recognize the date April 15th as tax day but ICE is not quite as clearcut.  For government contractors your ICE report is due 6 months following the end of the corporate fiscal year.   So multiple dates are possible, depending upon how you structure your company.  Many companies have a December 31 end to the fiscal year which means the ICE reports are due by June 30th.  It is not too early to start thinking of this right now if this is the case for your company.  There are typically 18 sections (or Schedules) associated with the ICE report template with another 6 "optional" schedules. (Wow! really?)  There is a government template/model for the ICE report.  You can find this at   http://www.dcaa.mil/ice.htm.  For the un-initiated, this can be a test of patience and sometimes very confusing.  It is no wonder that many people either procrastinate this or forget about it altogether.  This is not a good solution as the contracting officer then is in the drivers seat to determine your indirect billing rates and that could end up costing you money.  My recommendation is to do what you might do with your personal taxes, hire an expert.  The staff at Tech BizSolutions is just such experts.  Give me a call today at 303-867-8125 and we can discuss it in more detail.
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Topics: ICE, FAR, Incurred Cost Submission, DCAA accounting


DCAA Compliance: "Pay me now or Pay me later"

Posted by Mike Anderson on Wed, Dec 02, 2009 @ 04:02 AM

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Topics: DCAA compliance, DCAA accounting, government cost accounting


Happy Thanksgiving from TechBiz Solutions

Posted by Mike Anderson on Wed, Nov 25, 2009 @ 01:23 PM

Sometimes we forget the real meaning of the Thanksgiving holiday.  At the risk of sounding like an actor that has not rehearsed his acceptance speech when receiving an Academy Award, here is an incomplete list at best.

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Topics: business consultants, DCAA accounting, government cost accounting, DCAA guidance


DCAA to get tougher (again) and may become more influential.

Posted by Mike Anderson on Fri, Aug 21, 2009 @ 03:19 PM

Many of us recall the memo issued last December by the DCAA director instructing auditors to only issue "pass or fail" criteria as a result of the audit (Reference our blog titled: "DCAA 2008 year End Guidance - Happy Holidays, Government Contractors").  We have seen the results of this memo in "tougher" audits from the DCAA this year and many contractors feeling pain that they have not felt before.  Now, for the second time, investigators at the Government Accountability Office (GAO) have found widespread deficiencies in DCAA audits.  The current rumor is that there will be a further tightening of audit standards by the DCAA as a result.  This will not only increase the amount of "pain" that contractors feel but it will have other impacts as well.  There is speculation that this will increase the time spent by auditors during an audit.  Previously a typical DCAA audit might have been half a day but now the audit may stretch into multiple days with much more supporting documentation required.  With auditors taking more time it will only stand to reason that they will uncover more deficiencies and there will be more failed audits.  There will be a premium placed on making your accounting system compliant, reliable, documented, traceable, repeatable and accurate.  In addition, this will put more pressure on the DCAA.  Already overloaded with work, increasing the amount of time spent on each audit will not only increase the lead time for each audit, it will increase the chances of the contractor making mistakes today that will be uncovered later that could require significant adjustment.  The DCAA will have to hire more auditors but that takes time and training them takes time as well.  In the meantime, contractors will suffer.  There is also feelings in the GAO that the DCAA is important enough that the agency may become independent from the Department of Defense in the future.  If that happens, the agency will gain power within the government and most certainly act more independently.  This will further put pressure on the small government contractor.  The bottom line is this.  The government wants to increase the amount of purchases it makes from Small Business.  At the same time, it is becoming more complicated for Small Business to know how to operate an accounting system to meet the requirements.  Small Business will need to rely on independent consultants to help them with these systems or they will be faced with the reality of not being able to complete their government contacts and get paid accurately and on time. 
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Topics: Government Contract, DCAA, DCAA accounting, DCAA audit