10 Keys to Evaluating DCAA
Compliant Accounting Software

Dan Murphy,
President
Barbara McElnea
Director,
Solution
Managem...
Agenda
•
•
•
•

DCAA Charter and Interests
DCAA Compliance Requirements
10 Keys for DCAA
How Can Government Contractors Me...
Defense Contract Audit Agency
• DCAA was established as a separate agency of
the Department of Defense in July 1965.
• Ope...
DCAA General Audit Interests
• DCAA is concerned with identifying and
evaluating all activities that contribute or have
an...
DCAA Major Areas of Emphasis
•
•
•
•

Internal Control Systems
Management Policies
Accuracy and Reasonableness of Cost Rep...
DCAA Pre-award Survey
• Pre-award survey is an evaluation of prospective
contractor’s ability to perform a proposed
contra...
DCAA Post Award Audits
• Major objective of post award audits is to
determine if the contractor’s accounting
system is ade...
Key DCAA Compliance Areas
•
•
•
•
•
•
•
•
•
•
•
•
•

Accounting system is under general ledger control
Costs are in accord...
10 Keys for DCAA
•
•
•
•

•
•
•
•

•
•

Time Entry per DCAA regulations
Expense Entry per DCAA/gov requirements – JTAR etc...
Who is Dassian?
•
•
•
•

Software Product Company since 2000
Headquarters: Scottsdale AZ
400+ Customers – most of which ar...
Dassian’s GOVCON Value
• Enables Government Compliance
–
–
–
–
–
–
–
–

Job Costing
Cost Accounting Standards / Indirect C...
Dassian Value Drivers
• Extends SAP Footprint for Government
Compliant Processes
- Same code base
- Same look and feel
- S...
Where does Dassian fit in SAP Ecosystem?

DCAA Compliant Solutions
Project Planning and Earned Value
Composite (PPC)
Incur...
Dassian Industry Focused Solution
Rapidly Implement CAS & Contract Compliance for Government Contracting
Pre-Defined CAS
A...
Dassian Product Roadmap
Create
Proposal

Create/Manage Time & Expense
Payroll
Contract
Capture
Processing

2

1

3

4

Job...
Summary Points
• Finally!….a turn-key GOVCON solution exists:
Meets major DCAA government compliancy
– Rapid to implement
...
Thank You!
Dassian & SAP Webcast ― https://www.youtube.com/dassianinc
Transparency Needed for Today’s Government Contracto...
Notices

1/22/2014

©Copyright 2013 Dassian Inc.

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10 keys to evaluating DCAA compliant accounting software

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Looking for a new ERP that can run your government contracting business? Read about the 10 keys to evaluating DCAA compliant accounting software.

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10 keys to evaluating DCAA compliant accounting software

  1. 1. 10 Keys to Evaluating DCAA Compliant Accounting Software Dan Murphy, President Barbara McElnea Director, Solution Management • 6900 East Camelback Rd. Suite 805 Scottsdale, Arizona 85251 • Phone: 480-922-1700 • Email: info@dassian.com
  2. 2. 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
  3. 3. 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. 1/22/2014 ©Copyright 2013 Dassian Inc. Page 3
  4. 4. 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. 1/22/2014 ©Copyright 2013 Dassian Inc. Page 4
  5. 5. 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). 1/22/2014 ©Copyright 2013 Dassian Inc. Page 5
  6. 6. 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 1/22/2014 ©Copyright 2013 Dassian Inc. Page 6
  7. 7. 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. 1/22/2014 ©Copyright 2013 Dassian Inc. Page 7
  8. 8. 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 1/22/2014 ©Copyright 2013 Dassian Inc. Page 8
  9. 9. 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 1/22/2014 ©Copyright 2013 Dassian Inc. Page 9
  10. 10. 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 1/22/2014 ©Copyright 2013 Dassian Inc. Page 10
  11. 11. 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) 1/22/2014 ©Copyright 2013 Dassian Inc. Page 11
  12. 12. 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
  13. 13. Where does Dassian fit in SAP Ecosystem? DCAA Compliant Solutions Project Planning and Earned Value Composite (PPC) Incurred Cost Reporting Aftermarket Partner Support Managemen t Supply Engagemen Chain t Fulfillment Managemen t Program Program & Project & Project Mgmt. Mgmt. SAP Industry Enhancements ManufacKnowledg turing e& Models Resource Lifecycle © 2013 All rights reserved MS Project / SAP ERP Integration (MSIS) Product Lifecycle Product Lifecycle Data Data Mgmt. Mgmt. CAS Compliant Costing Actual Labor Costing (ALC) Marketing & Business Customer Acquisition Relationship Management Government Contracts and Billing Workforce Authorization Supply Chain IT Service Planning & Delivery Support Contract Flowdown Wednesday, January 22, 2014
  14. 14. Dassian Industry Focused Solution Rapidly Implement CAS & Contract Compliance for Government Contracting Pre-Defined CAS Accounting, and Disclosure Statement Cost Plus, T&M, FFP Contracts & Automated Billing SF1034 & SF1035 Invoice Forms Contract Flow Down Incurred Cost Submission, CPR Reports Training, Testing, and Process Documentation Timekeeping & Payroll 1/22/2014 ©Copyright 2013 Dassian Inc. Page 14
  15. 15. Dassian Product Roadmap Create Proposal Create/Manage Time & Expense Payroll Contract Capture Processing 2 1 3 4 Job Costing 5 Burden Application 7 6 CLIN Setup DP002.3 Contract Mods DP046 9 8 SAP ERP + Dassian Add-on Contract Management Forward Pricing Payment Compliance & Processing Reporting Invoicing Contract Flowdown Fees & Witholds ACRN Mgmt DP004 Funding Control Forms & Vouchers DP046 Financial Management Proposal WBS Contract WBS Charge Codes Workforce Payroll Auth DP014 Actual Labor Costing Non Labor Costing DP011 Actual Burden Applied Burden Profitability Reporting DP011 Project Cash Flow Incurred Cost Sub. DP032 Project Management Task Planning Program Baseline Resource Mgmt Schedule Integration DP051 © 2013 All rights reserved Project Status EV Mgmt ETC Gen. DP010 Wednesday, January 22, 2014 EAC Gen. CPR CFSR
  16. 16. 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. 1/22/2014 ©Copyright 2013 Dassian Inc. Page 16
  17. 17. Thank You! Dassian & SAP Webcast ― https://www.youtube.com/dassianinc Transparency Needed for Today’s Government Contractors Join our LinkedIn Group: SAP Dassian for Government Contracting Slideshare.net/Dassian – product slides LinkedIn http://linkd.in/145eL3I YouTube.com/Dassianinc – product videos Barbara McElnea Dassian Director, Solution Mgmt • 6900 East Camelback Rd. Suite 805 Scottsdale, Arizona 85251 • Phone: 480-922-1700 • Email: info@dassian.com FB – facebook.com/dassianinc Twitter - @dassianinc www.dassian.com - product brochures Join our newsletter at www.dassian.com 1/22/2014 ©Copyright 2013 Dassian Inc. Page 17
  18. 18. Notices 1/22/2014 ©Copyright 2013 Dassian Inc. Page 18

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