At Diener & Associates, we assist with obtaining and preserving compliance with federal agencies and regulations to maximize your organization’s eligibility to be awarded contracts. We provide an array of government contractor advisory services, addressing strategic, financial, and regulatory needs for businesses.
Generally accepted accounting principles (GAAP) are a set of accounting principles, standards, and procedures issued by the Financial Accounting Standards Board. These principles were set up to improve the clarity, consistency, and comparability of the communication of financial information. Being an effective government contract accountant directly corresponds with one’s understanding of the GAAP. Diener & Associates CPA’s has set up a solid GAAP framework that makes compliance with government regulations much easier.
DCAA Compliance Requirements
Businesses often mistake a DCAA approved accounting system for being a certified system. However, there is no such thing as a certification-granted or “approved” system. Accounting systems must simply adhere to government regulations and utilize software adhering to audit regulations. Diener and Associates ensures that DCAA regulations are being adhered to by following properly established policies and procedures.
Under the SF1408, a compliant accounting system must meet the following requirements:
- Separation between direct and indirect costs
- Logical and consistent method for the allocation of indirect costs to intermediate and final cost objectives
- Accumulation of costs under general ledger control
- A timekeeping system that identifies employees’ labor by intermediate or final cost objective
- A labor distribution system that charges direct and indirect labor to the appropriate cost objectives
- Determination and recording of costs charged to a contract occurring at least monthly
- Tracking and exclusion of unallowable costs in terms of FAR 31, as well as other contract provisions
- Identification of costs by contract line item
- Segregation of pre-production and production costs
- Financial information provided to demonstrate accordance with the limitation of funds clause as well as to support requests for progress payments.
DCAA audits are driven by additional government regulations such as FAR, DFARS, and CAS. Diener & Associates, reviews the following compliance regulations for potential and established government contractors:
U.S. General Services Administration provides centralized procurement for the Federal Government. The GSA regulations contain agency acquisition policies and practices, contract clauses, solicitation provisions and forms that control the relationship between GSA and contractors and prospective Contractors. Diener & Associates, CPA’s are well versed in GSA regulations and requirements to maintain compliance throughout the bidding and proposal processes.
The Federal Acquisition Regulation (FAR) provides the policies and procedures to follow in the federal acquisition process. Penalties for noncompliance can lead to loss of a significant portion of business.
The Defense Federal Acquisition Regulation Supplement (DFARS) manages the investment in raw materials to ensure that the United States’ defense industry is not overly dependent on foreign sources of supply.
The Cost Accounting Standards (CAS) is a list of 19 accounting standards put forth by the Cost Accounting Standards Board (CASB) that dictates the procurement and pricing of government contracts. CAS provides consistency between and within contractors’ cost accounting practices. This regulates contract pricing and what can be charged to which contract, as well as dictating how to maintain your accounting systems and how the costs must flow from purchase to final cost.
Discuss Outsourced Government Compliance Consulting Services with Our CPA Team
When doing business with the federal government, accounting services differ substantially from traditional bookkeeping services. Securing outsourced accounting and bookkeeping services will keep you both DCAA compliant and focus your time on developing the business itself. Working with Diener & Associates also allows you the convenience of being able to consult with experienced financial professionals who will guide you on how to best manage your finances while maintaining compliance.
Working with Diener & Associates ensures that your organization will be kept within government compliance and allows you to concentrate on bidding on new business and performing under existing contracts. Call Diener & Associates at 703.386.7864 or schedule a consultation online today.