The basics of ICE and QuickBooks Presented by: Alonso Professional Services
Overview <ul><li>DCAA history </li></ul><ul><li>Incurred Cost Submissions </li></ul><ul><li>QuickBooks integration </li></...
History of DCAA <ul><li>July 1965 – A new audit agency was formed by transferring existing resources from each of the mili...
Incurred Cost Submissions & the ICE Model <ul><li>What is ICE? </li></ul><ul><li>Federal Regulations </li></ul><ul><li>Ben...
What is ICE? Incurred Cost Electronically <ul><li>A user friendly electronic spreadsheet (Excel) that contains Summary and...
Federal Regulations <ul><li>FAR 52.216-7 </li></ul><ul><li>FAR Subpart 42.7 </li></ul>
FAR 52.216-7 <ul><li>Requires that the contractor submit an adequate final incurred cost proposal with supporting rates. <...
FAR Subpart 42.7 <ul><li>This subpart prescribes policies and procedures for establishing: </li></ul><ul><ul><li>Billing r...
Benefits of ICE <ul><li>Consistent Organization and Content reduces time to determine adequacy of submission. </li></ul><u...
Continued…  <ul><li>Provides for a better understanding of the submission/data requirements </li></ul><ul><li>Results in a...
QuickBooks Integration <ul><li>QuickBooks will be enhanced to meet the DCAA auditing requirements by: </li></ul><ul><li>Cr...
QB’s continued… <ul><li>Verify General Ledger for current and prior Fiscal Year’s reconciled.  </li></ul><ul><li>Payroll t...
Final Rates <ul><li>The following will be met in order to provide Final Rates </li></ul><ul><li>Support for Cost of Money ...
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The Basics Of Incurred Cost Electronically and Quick Books

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The Basics Of Incurred Cost Electronically and Quick Books

  1. 1. The basics of ICE and QuickBooks Presented by: Alonso Professional Services
  2. 2. Overview <ul><li>DCAA history </li></ul><ul><li>Incurred Cost Submissions </li></ul><ul><li>QuickBooks integration </li></ul><ul><li>Final Rates </li></ul>
  3. 3. History of DCAA <ul><li>July 1965 – A new audit agency was formed by transferring existing resources from each of the military services into the newly formed Defense Contract Audit Agency. A single organization so the contractor and procurement could deal with on contract audit matters. </li></ul><ul><li>The DCAA Charter – DoD directive 5105.36 states DCAA shall: </li></ul><ul><li>Performed necessary contract auditing for the Department of Defense and provide accounting and financial advisory services regarding contracts and subcontracts to all Department of Defense components responsible for procurement and contract administration. These services will be provided in connection with negotiation, administration and settlement of contracts and subcontracts. </li></ul><ul><li>Provide contract auditing services to other Government agencies as appropriate. </li></ul>
  4. 4. Incurred Cost Submissions & the ICE Model <ul><li>What is ICE? </li></ul><ul><li>Federal Regulations </li></ul><ul><li>Benefits of ICE </li></ul><ul><li>Configuring QuickBooks to complete ICE </li></ul>
  5. 5. What is ICE? Incurred Cost Electronically <ul><li>A user friendly electronic spreadsheet (Excel) that contains Summary and Detailed Schedules to Support Claimed Indirect Expense, Occupancy, G&A, and cost of Money Rates. </li></ul><ul><li>Designed for a Low Complexity or may be modified to be more complex or less complex. </li></ul><ul><li>Designed to promote compliance with FAR 52.216-7 (Allowable Cost and Payment) </li></ul><ul><li>Link http://www.dcaa.mil/ice.htm </li></ul>
  6. 6. Federal Regulations <ul><li>FAR 52.216-7 </li></ul><ul><li>FAR Subpart 42.7 </li></ul>
  7. 7. FAR 52.216-7 <ul><li>Requires that the contractor submit an adequate final incurred cost proposal with supporting rates. </li></ul><ul><li>This proposal is due within 6 months after the end of the contractor’s fiscal year. </li></ul>
  8. 8. FAR Subpart 42.7 <ul><li>This subpart prescribes policies and procedures for establishing: </li></ul><ul><ul><li>Billing rates 42.704 </li></ul></ul><ul><ul><li>Final Indirect cost rates 42.705 </li></ul></ul><ul><li>Requires a signed “Certificate of Indirect Costs”: 42.703-2 </li></ul>
  9. 9. Benefits of ICE <ul><li>Consistent Organization and Content reduces time to determine adequacy of submission. </li></ul><ul><li>Includes all required schedules </li></ul><ul><li>Increases efficiency of the audit process </li></ul><ul><li>Results in less interruption of the contractor’s work schedule </li></ul><ul><li>Improves communication between contractor and auditor </li></ul>
  10. 10. Continued… <ul><li>Provides for a better understanding of the submission/data requirements </li></ul><ul><li>Results in an inventory of electronic files that can easily be updated for subsequent years’ submissions </li></ul><ul><li>Permits updating either manually or by electronically importing data from QuickBooks. </li></ul><ul><li>Serves as a useful tool for comparing historical cost data and for analyzing indirect costs. </li></ul>
  11. 11. QuickBooks Integration <ul><li>QuickBooks will be enhanced to meet the DCAA auditing requirements by: </li></ul><ul><li>Creating Cost Pools through Chart of Accounts </li></ul><ul><li>Setup cost elements for breakdown by Contract, Contract Type, Hours and Amounts billed on T&M Contracts. </li></ul>
  12. 12. QB’s continued… <ul><li>Verify General Ledger for current and prior Fiscal Year’s reconciled. </li></ul><ul><li>Payroll to allow for Manual or Electronic timekeeping </li></ul><ul><li>Timesheets to allow to identify Contract, Hours work and direct or indirect labor. </li></ul><ul><li>Track budget vs. actual cost. </li></ul>
  13. 13. Final Rates <ul><li>The following will be met in order to provide Final Rates </li></ul><ul><li>Support for Cost of Money computations </li></ul><ul><li>Cumulative billing and contract closing information </li></ul><ul><li>Support for adjustments </li></ul><ul><li>Reconciliation of Incurred Cost claim to Tax return </li></ul><ul><li>Federal Government participation in Indirect Cost pools </li></ul>

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