Your DCAA System Audit- “When Failure Is Not An Option”

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

http://www.dcaa.mil/small_business/Accounting_System.pdf

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

http://www.dcaa.mil/DCAAM_7641.90.pdf

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 sheila.tomlinson@daston.com for more information.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s