10 keys to evaluating DCAA compliant accounting software
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Transcript of 10 keys to evaluating DCAA compliant accounting software
• 6900 East Camelback Rd. Suite 805 Scottsdale, Arizona 85251
• Phone: 480-922-1700
• Email: [email protected]
Dan Murphy,
President
Barbara McElnea
Director, Solution
Management
10 Keys to Evaluating DCAA Compliant Accounting Software
Agenda
• DCAA Charter and Interests
• DCAA Compliance Requirements
• 10 Keys for DCAA
• How Can Government Contractors Meet the DCAA Compliance Challenge?
• Review of SAP + Dassian Enterprise Solution for Government Compliance
• Summary
1/22/2014 ©Copyright 2013 Dassian Inc. Page 2
Defense Contract Audit Agency
• DCAA was established as a separate agency of the Department of Defense in July 1965.
• Operates under the control of the Under Secretary of Defense.
• Charter is to perform DoD contract audits and provides accounting and financial advisory services to other Government agencies as appropriate.
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DCAA General Audit Interests
• DCAA is concerned with identifying and evaluating all activities that contribute or have an impact on proposed or incurred costs of Government contracts.
• DCAA evaluates contractors’ financial policies, procedures, and internal controls.
• DCAA performs audits which identify opportunities for contractors to reduce costs.
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DCAA Major Areas of Emphasis
• Internal Control Systems
• Management Policies
• Accuracy and Reasonableness of Cost Representations
• Adequacy and Reliability of Records and Accounting Systems
• Financial Capability
• Contractor Compliance with Contractual Provisions having Accounting Significance such as Cost Principles CFR (FAR, Part 31), Cost Accounting Standards CAS (FAR, 52.230-2), and Truth in Negotiations Act TINA (FAR 52.215-10, 11, 12, 13).
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DCAA Pre-award Survey
• Pre-award survey is an evaluation of prospective contractor’s ability to perform a proposed contract including accounting system survey.
• May cover technical, production, quality assurance, financial capability, accounting system and other considerations.
• Two Categories of Information – Contractor’s financial capability to perform the
contract – Adequacy of accounting system to accumulate the
type of cost required by the contract
• Pre-award Survey Form SF1408
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DCAA Post Award Audits
• Major objective of post award audits is to determine if the contractor’s accounting system is adequate for accumulating and billing costs on Government contracts.
• Performed at the request of a contracting officer when (1) a follow-up pre-award survey is recommended or (2) a pre-award survey was not conducted prior to contract award and the contracting officer determines that an audit is required to support contract requirements.
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Key DCAA Compliance Areas • Accounting system is under general ledger control • Costs are in accordance with Generally Accepted Accounting Principles (GAAP) • Adequate timekeeping system • Accumulates direct costs by contract (job costing) • Proper segregation and consistency of direct and indirect costs • Ability of labor system to charge direct and indirect labor to the appropriate cost
objectives • Labor system functions according to CAS standards for actual cost labor
distribution and total time accounting • Ability to define and segregate allowable and unallowable costs. Contracts costs
exclude unallowables. • Logical and consistent allocation methods of indirect cost pools to intermediate
and final cost objectives • Ability to record contract terms and flow down required contract clauses to
subcontractors such as CAS clauses, prime contract Number, DPAS rating • Segregation of preproduction costs from post production costs • All costs are reasonable, allocable to contracts, in accordance with generally
accepted accounting principles (GAAP) and Cost Accounting Standards (CAS), and not prohibited by the contract or Government regulation
• Accounting system can support interim and final indirect rates
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10 Keys for DCAA
• Time Entry per DCAA regulations • Expense Entry per DCAA/gov requirements – JTAR etc. • Segregating Direct from Indirect Costs • Segregating Allowable vs Unallowable Costs and not
including Unallowable Costs on Government Contracts • Cost Pools and Allocation for Provisional versus Actual
Indirect Rates • Accurate Billing and Billing formats for All Contract Types • Billing Cost Backup Showing Original General Ledger
Postings • CAS compliance including Actual Labor Costing and Total
Time Accounting where applicable • Contract Flow Down to Subcontractors • Retroactive Application of Rates for Billing and Costing
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Who is Dassian?
• Software Product Company since 2000
• Headquarters: Scottsdale AZ
• 400+ Customers – most of which are GovCons
• Provides a Leading GOVCON Enterprise Solution based on SAP’s world-class ERP platform
– Meets Major Government Compliancy
– Quickstart, Low-Cost, Pre-Configured, Fast Implementation and Training
• Offers Consulting and Implementation Services
• SAP Channel Partner
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Dassian’s GOVCON Value
• Enables Government Compliance – Job Costing – Cost Accounting Standards / Indirect Costing – Labor Accumulation – TimeKeeping – Billing – Contract Flow Down to Suppliers – Earned Value Management – Incurred Cost Reporting
• Supports All Major End-to-End Business Processes • Can run both commerical and government business
processes in one environment • Transparency and Profitability at the Lowest Levels of your
business (project level)
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Dassian Value Drivers
• Extends SAP Footprint for Government Compliant Processes
- Same code base
- Same look and feel
- Same configuration capability
Value : Lower cost of ownership, shorter learning curve, same terminology company wide
© 2013 All rights reserved Wednesday, January 22, 2014
Partner
Managemen
t
Knowledg
e &
Resource
Lifecycle
Engagemen
t
Managemen
t
Product Lifecycle Data Mgmt.
Customer Relationship Management
IT Service
Delivery &
Support
Program
& Project
Mgmt.
SAP Industry Enhancements
Program
& Project
Mgmt. Aftermarket
Support
Supply
Chain
Fulfillment
Manufac-
turing
Models
Product
Lifecycle
Data
Mgmt.
Marketing &
Business
Acquisition
Supply
Chain
Planning
DCAA Compliant Solutions
Project Planning and Earned Value Composite (PPC)
Incurred Cost Reporting
MS Project / SAP ERP Integration (MSIS)
CAS Compliant Costing
Actual Labor Costing (ALC)
Government Contracts and Billing
Workforce Authorization
Contract Flowdown
Where does Dassian fit in SAP Ecosystem?
© 2013 All rights reserved Wednesday, January 22, 2014
Dassian Industry Focused Solution
1/22/2014 ©Copyright 2013 Dassian Inc. Page 14
Rapidly Implement CAS & Contract Compliance for Government Contracting
SF1034 & SF1035 Invoice Forms
Incurred Cost Submission, CPR Reports
Pre-Defined CAS Accounting, and Disclosure Statement
Training, Testing, and Process Documentation
Cost Plus, T&M, FFP Contracts & Automated Billing
Timekeeping & Payroll
Contract Flow Down
Contract Management
Financial Management
SAP ERP + Dassian Add-on
Payment
Processing
Time & Expense
Capture Invoicing Job
Costing
Payroll
Processing
Create/Manage
Contract
5 7 1 2 6 4 3 8
Create
Proposal
Burden
Application
DP002.3 DP046 DP046
DP011 DP011 DP014
DP010 DP051
Forward Pricing
CLIN Setup
Contract Mods
Fees & Witholds
ACRN Mgmt
Funding Control
Forms & Vouchers
Proposal WBS
Contract WBS
Charge Codes
Workforce Auth
Applied Burden
Profitability Reporting
Project Cash Flow
Payroll Actual Labor
Costing
Non Labor
Costing
Actual Burden
Incurred Cost Sub.
DP032
9
Compliance &
Reporting
Task Planning
Program Baseline
Resource Mgmt
CPR Project Status
EV Mgmt
ETC Gen.
EAC Gen.
CFSR
Project Management
Schedule Integration
Contract Flowdown
DP004
Dassian Product Roadmap
© 2013 All rights reserved Wednesday, January 22, 2014
Summary Points
• Finally!….a turn-key GOVCON solution exists: Meets major DCAA government compliancy
– Rapid to implement
– Low cost
– Run both commerical and government business processes in one environment
– Scalable to grow with your organization
- Dassian’s GOVCON Enterprise Solution Built for Government Contractors and enabled by SAP’s world-class ERP solution.
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Thank You!
1/22/2014 ©Copyright 2013 Dassian Inc. Page 17
• 6900 East Camelback Rd. Suite 805 Scottsdale, Arizona 85251
• Phone: 480-922-1700
• Email: [email protected]
Barbara McElnea
Dassian Director, Solution Mgmt
Dassian & SAP Webcast ― https://www.youtube.com/dassianinc
Transparency Needed for Today’s Government Contractors
Join our LinkedIn Group:
SAP Dassian for Government
Contracting
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1/22/2014 ©Copyright 2013 Dassian Inc. Page 18