Government Cost Accounting
Hoyman Dobson proved to be the vital force in my business’ survivorship and growth. The newly calculated indirect rates and billing system resulted in winning the new contract with the University and receiving timely payments. Also, the development of the timekeeping system made my business compliant with federal government contracting regulations in the event of a DCAA audit.
Milton Smith, Owner
We can help you with:
- Deltek implementation
- Setting up cost accounting systems that meet the requirements of FAR Part 31.2
- Contract rate calculations
- Developing ICE models
- DCAA representation
- Audits, reviews, compilations of Government contracts
- Consultation and documentation related to FAR and DCAA regulations
- Contact: Debbie Goode, Audit Director. Email or call 321-255-0088.
- Also, tap into the resources of the GCAT - the Government Contracting Advisory Team (GCAT).
Ask us your questions
Read our government contracting newsletters or articles.
When doing business with the Government, the cost accounting principles are more complex and rigid than those applied in commercial business practices. The tips below will assist your company in laying the foundation for a sound Government cost accounting system which is critical to obtaining and reporting on your Government contracts.
1. Develop your Government cost accounting system to meet the Defense Contract Audit Agency (DCAA) standards using the Federal Acquisition Regulation (FAR), Part 31.2 (Contracts with Commercial Organizations) as your guide.
FAR Part 31.2 provides direction on how a Government contract should be priced and which cost principles and procedures should be used, which costs are allowable under the contract and how they are determined, and which costs are unallowable and how to account for them.
2. Get ready for the DCAA audit. What happens when you are audited by the DCAA can make all the difference. You may be subject to many types of DCAA audits. But two of them, listed below, relate to the Government cost accounting principles and are very important to obtaining and/or retaining your Government contracts:
- The pre-award survey is a DCAA audit of a prospective contractor’s accounting system including financial statements, tax returns, chart of accounts, trial balance, segregation of costs, timekeeping system, costs by contract line item, interim determination of costs, etc.
- The post-award audit is a DCAA audit of the contractor’s accounting system and includes a more in-depth examination of contract costs and how they were sourced. The audits include review of progress payment requests, material verification checks, annual incurred costs, and indirect rates.
Although FAR, CAS, GAAP, DCAA, DCMA, DCAAP, ICE Model, and other acronyms may sound overwhelming, pursuing Government contracts is definitely worth the effort and our Hoyman Dobson team is ready and able to assist you.
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