As government contractors, we have either experienced this audit or have it looming in our near future. This article is intended as a refresher for those who have experienced the audit and a helpful resource for those who are anticipating it.
To start, it’s important to know who will be auditing your company and by what authority.
Defense Contract Audit Agency (DCAA)
The Defense Contract Audit Agency (DCA) provides audit and financial advisory services to Department of Defense (DoD) and other federal entities responsible for acquisition and contract administration. DCAA operates under the authority, direction, and control of the Under Secretary of Defense (Comptroller)/Chief Financial Officer.
Next, you will want to explore any guidance the agency offers about the audit and what to expect during the auditing process.
Please feel free to reference the following website link for:
Accounting System Requirements
Then you will want to perform an internal system’s gap analysis. If during your analysis you find any gaps in your ERP’s ability to meet DCAA’s compliance requirements and/or it’s ability to assist you in achieving and/or maintaining compliance. Weighing the fact that penalties associated with non-compliance can be severe; you may find yourself highly incentivized to put remedies in place prior to your audit. For further guidance on operating in a DCAA compliant environment and penalties for non-compliance, please access further information via this link:
Detailed Contractor Information
In addition, please feel free to reach out to us for more information on how we can help you. We are happy to share our experience helping many Netsuite clients close their system gaps and pass the audit. As government contractor’s ourselves, we understand your situation and understand the pressure of operating in an environment where “failure is not an option.”
To learn more, either respond directly to this post or email email@example.com for more information.