DCAA COMPLIANCE AUDIT

In government contracting, the primary accounting concern is cost.

There is a big difference between accounting conducted by a commercial firm and a government contractor regarding how costs are classified, segregated, allocated, and reported. 

Some of the everyday items being scrutinized during a 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 requests as “special” or “other” audits.

FAR and CAS are rules that apply specifically to federal government contractors.

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

FAR stands for Federal Acquisition Regulation, essentially the bible of government procurement. It is 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 to charge contracts, what gets charged to which contracts, how to maintain your accounting systems, and how the costs flow from incursion to the final expenses. It also instructs contractors on how to account for certain types of costs.

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

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