DCAA COMPLIANCE AUDIT

In government contracting, the primary accounting concern is cost.

There’s a big difference between accounting conducted by a commercial firm and a government contractor in terms of how costs are classified, segregated, allocated and reported. 

Some of the common items being scrutinized during an DCAA Compliance audit are:

  • Allowable costs,

  • unallowable costs,

  • direct costs,

  • indirect costs,

  • cost pools and

  • pooling of indirect costs. 

The DCAA performs various types of audits including:

  • forward pricing,

  • pre-award,

  • incurred cost,

  • compensation and

  • benefits and

  • Contractor purchase systems review (CPSR), labor charging/floor checks, special and other audits.

Contracting officers may also request an independent financial opinion on specific elements of a contract.

The DCAA typically categorizes these types of requests as “special” or “other” audits.

FAR and CAS are two sets of rules that apply specifically to government contractors that do work for the federal government.

DCAA and federal government auditors use FAR and CAS as their rulebooks.

FAR is short for Federal Acquisition Regulation, which is essentially the bible of government procurement. It’s the primary set of rules agencies use when purchasing goods and services.

CAS stands for Cost Accounting Standards. Established in 1968, CAS was created to drive consistency within and between contractors’ cost accounting practices.

CAS tells you how you can charge to contracts, what gets charged to which contracts, dictates how to maintain your accounting systems and tells you how the costs have to flow from incursion to the final costs. It also instructs contractors on how to account for certain types of costs.

Our team of Experts can assist you with DCAA Compliance Audit.

For additional information and compliance issues, please call us at 281-644-0509 / 800-593-1730 or email us at info@dynamiccontractsconsultants.com or contact us now.