Step 10: Accounting Policies and Procedures
MEETS THE FOLLOWING DCAA REQUIREMENTS
- System is in full operation
One of the first requests from DCAA will be a written copy of your Accounting Policies and Procedures. From this document, DCAA will plan their audit. Therefore, it is important that you such a document ready for them, and that it accurately reflects your DCAA compliant processes. To assist you, we make available a 34-page template which you can edit.
description of accounts
You will need to list all of your cost of good sold (COGS), indirect pool and unallowable accounts, and describe their use in this document. Ensure that your list in your Accounting P&P matches exactly your Chart of Accounts.
Your Accounting P&P should provide formula showing exactly how you allocate indirect expenses to contracts. Ensure that the allocation method matches what was proposed in your contract proposal.
time keeping policy
Your time keeping policy and system should be described. Important are the procedures you use to collect time on a daily basis, how corrections are handled, the approval process, and assignment of charge codes to employees.
Contract and expenditure control
Describe how contracts are managed to prevent overcharging the government beyond your funding limits. Who reviews contract performance and how often must be addressed.