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SDVOB Part 1 - Left Brain: Right Design!


Published on

Learn what Defense Contract Audit Agency
(DCAA) approval really means for your business
and what the Agency looks for during system
and/or rate audits. You’ll gain insight with block
diagrams to help design the accounting system
that’s right for your business and the tools for

Published in: Business
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SDVOB Part 1 - Left Brain: Right Design!

  1. 1. Part 1: Left Brain: Right Design! Elite SDOVB Conference 2015
  2. 2. Positive Share
  3. 3. Safety Check FAR update – increased acquisition thresholds effective October 1, 2015
  4. 4. Poll How many business owners in attendance? How many believe your accounting system is adequate? How many believe your indirect rate structure is accurate? How many believe you would pass an audit today? How many believe your system is DCAA compliant?
  5. 5. DCAA Approval What does DCAA approval mean to you?
  6. 6. DCAA Approval DCAA approval involves: Review of your accounting system including: Software setup Policies & Procedures Records & Reports
  7. 7. SF1408
  8. 8. DCAA Approval DCAA approval is not: Endorsement of any software or service
  9. 9. Building Blocks Chart of Accounts Indirect Pools & Rate Structure Policies & Procedures
  10. 10. Chart of Accounts Keep it Simple 4-6 digits
  11. 11. Chart of Accounts Keep it Serialized 1 Assets, 2 Liabilities, 3 Capital, 4 Revenue, 5 COGS, 6 Fringe, 7 Overhead, 8 G&A, 9 Unallowable
  12. 12. Chart of Accounts Keep it Synchronized xxxx01 Labor xxxx02 Training xxxx03 Travel
  13. 13. Poll How many indirect pools do you currently use? 3 4 5 6 or more
  14. 14. Indirect Pools Typical Pools Fringe Overhead G&A
  15. 15. Indirect Pools Optional Pools Facilities IT Subcontract Management
  16. 16. Rate Structure Fringe Employer Taxes Health Insurance 401(k)
  17. 17. Rate Structure Fringe Total Fringe Costs (divided by) Total Labor
  18. 18. Rate Structure Overhead Non-Direct Labor Training Rent Utilities
  19. 19. Rate Structure Overhead Total Overhead Costs (divided by) Direct, B&P, and IRAD Labor
  20. 20. Rate Structure G&A Accounting HR Professional Services Business Insurance
  21. 21. Rate Structure G&A Total G&A Costs (divided by) Total Expenses minus Total G&A Costs* *Adjustments necessary for B&P, IRAD, and Unallowable Costs
  22. 22. Poll How many of you have written policies & procedures? Have they been updated in the past 12 months? Have there been any significant changes in your business since their last update?
  23. 23. Policies & Procedures Say what you do, Do what you say, Have records that match
  24. 24. Policies & Procedures Triggers to review or update Budgets New personnel New system or update Before audit New line of business
  25. 25. Sample Manual
  26. 26. Pulling It All Together Chart of Accounts Indirect Pools & Rate Structures Policies & Procedures
  27. 27. Additional Resources Password: LongBeach
  28. 28. Questions?
  29. 29. Thank you! Robert E. Jones (614) 556-4415