Accounting Systems, Compliance and the Government Contractor

Accounting Systems, Compliance and the Government Contractor

4 Pages · 2010 · 152 KB · English

White PaPer www.deltek.com [email protected] 800.456.2009 Accounting Systems, Compliance and the Government Contractor Government Contract Accounting Compliance Overview

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White PaPer www.deltek.com [email protected] 800.45\f.2009 Accounting Systems\a, Compliance an\f the Gove\bnment Cont\bacto\b\a Gove\bnment Cont\bact A\accounting Complianc\ae Ove\bview Most fi\bms a\be int\bo\a\fuce\f to the issue \aof accounting system c\aompliance in associ\aation with thei\b fi\bst p\be\aawa\b\f su\bvey. P\beawa\b\f su\bveys usually take\a place p\bio\b to awa\b\f \aof the fi\bm’s fi\bst la\bge p\bi\ame cont\bact with th\ae fe\fe\bal gove\bnment. When th\ae p\bospective cont\ba\act will \bequi\be cost-base\f i\anvoicing o\b \bepo\btin\ag, an impo\btant pa\bt of th\ae p\beawa\b\f su\bvey is t\ahe accounting system \b\aeview. As outline\f \ain the Defense Cont\bact Au\a\fit Agency (DCAA) publication entitle\a\f “Info\bmation fo\b Cont\bacto\bs” \fate\f Jan\aua\by 2004, the pu\bpo\ase of this \beview is “\ato \fete\bmine the a\fe\aquacy an\f suitability of t\ahe cont\bacto\b’s accou\anting system an\f p\bactices\a fo\b accumulating co\asts un\fe\b the type of Go\ave\bnment cont\bact to\a be awa\b\fe\f.” (Publicatio\an DCAAP 7641.90,Ch\aapte\b 2, Section 2-301)1\a Cont\ba\by to the beli\aef p\bevalent in many\a companies, the issu\ae of accounting sys\atem compliance \foes not\a \beally \bevolve a\boun\f\a the softwa\be itself. Ce\btai\anly the functionali\aty an\f capability of the s\aoftwa\be employe\f is ke\ay. Even mo\be impo\btant, thou\agh, is the netwo\bk \aof p\bactices an\f p\boce\fu\a\bes \bequi\be\f fo\b compliance. An\f mos\at impo\btant of all a\a\be the inte\bnal cont\bol mec\ahanisms that monito\a\b an\f enfo\bce them. Many integ\bate\f accou\anting softwa\be packages can be ope\bate\f in a \agove\bnment cont\bact \a compliant manne\b giv\aen a well-\fesigne\f s\aystem of p\bactices, p\boce\f\au\bes an\f inte\bnal con\at\bols. If a fi\bm’s softwa\be lacks a pa\bticu\ala\b \bequi\be\f cont\bol o\b featu\be, \athis can often be offset by a \a manual p\bactice o\b p\b\aoce\fu\be. If the sof\atwa\be lacks seve\bal such f\aeatu\bes, it may seem\a easie\b to just \fo the wo\bk\a with a pencil an\f p\aape\b. Howeve\b, manual syst\aems a\be p\bone to lap\ases in consistency an\f com\amunication not usua\ally associate\f with auto\amate\f systems. When DCAA examines \aa cont\bacto\b’s system\a fo\b compliance, they al\amost always sta\bt wi\ath the softwa\be. If the softwa\be system, as implemente\f, has su\afficient cost \beco\b\a\fing, t\backing, allocation\a, billing mechanism\as an\f inte\bnal

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