An Overview Of Dcaa Accounting And Its Requirements

Posted by dcaa Consultant on June 12th, 2018

It is true that DCAA is getting tougher on all government contractors. Over the years the DCAA has changed the grading scale for the accounting system audits. It has now allowed degrees of non-compliance and is also offering suggestions for DCAA compliance. Usually they are now following a pass and fail grading system that has made things even more difficult. According to the DCAA memorandum they will no longer report inadequate in part opinions. Add to that they have made it’s a point to identify the portions of the affected accounting system in their audit report. They will report the deficiencies and anomalies and recommend a disapproval of the system by the contracting officer.

Suspension Of Percentage

To ensure better and stricter dcaa accounting the agency will pursue suspension of a specific percentage of progress payments if applicable and reimbursement of costs as well. Further, any suggestions for improvement of the system will no longer be reported by them in the audit reports for internal control. It all depends on the Authorizing Contract Officer or the ACO who is the government assigned representative for your company and is responsible for all your contracts. The name of the Contracting Officer will be listed in your contract who will sign on all documents and contracts on behalf of the federal government. Therefore, it is better that you know and keep in touch with your ACO.

Inclusions In Interactions

There may be a few specific inclusions in your interactions as per Dcaa requirements and rules. This interaction may include people that work for and on behalf of the contracting officer. These peoples include the Contract Administrators or Contracting Specialists. The COTR or the Contracting Officers Technical Representative will be responsible to make sure that all work is performed as per the rule and as agreed. However, you should never rely on the COTR for any information regarding the process and administration of the contract whether it is for funding and modifications or period of performance end dates and delivery orders. This is unnecessary as none of these are in the hands of the COTR but with the Contracting Officer only to approve any changes.

DCAA Approved Tools

You should not worry about the tools and software that you use to follow the compliance rules of dcaa accounting. You can use QuickBooks or any other as DCAA is usually less concerned about what software you use as they are more concerned about how your accounting system eventually looks and depicts. They are worried about the accounting process on the whole looking for your ability to accumulate and allocate costs to government contracts properly and efficiently. Their prime objective is to screen out the unallowable costs and its allocation in your accounting system.

No Need Of Additional Software

You will not need any additional software for DCAA accounting to meet the desired standard. All you will need is the help and guidance of a qualified person to set up your accounting charts in proper manner and list all the items in it. You must know which items are to be placed in the chart and how to place it. This needs professional expertise and a sound knowledge about DCAA accounting which is much more complicated and different in standard with the GAAP accounting warranting professional help.