Workshop Description: The UH PTAC is pleased to provide you a workshop conducted by the Defense Contract Audit Agency (DCAA) to help you understand government accounting system requirements and how to monitor subcontracts.
DCAA provides audit and financial-advisory services to Department of Defense (DoD) and other federal entities responsible for acquisition (procurement) and contract administration. DCAA primarily conducts contract audits. Contract audits are independent, professional compliance examinations (i.e., proposals, claims, or submissions) made by contractors. They provide a variety of services relating to preaward and postaward audit services.
One service provided by DCAA is Preaward Accounting System Surveys to determine the compliance of your accounting system with contract requirements. DCAA will provide an overview of the preaward accounting system design review process. You will learn what occurs prior to the award of a cost-type contract, what is contained in the SF 1408, and what the applicable Defense Federal Acquisition Regulation Supplement (DFARS) regulations say with regard to what comprises an acceptable accounting system.
Total contract costs, including direct costs and indirect costs will be discussed. Examples of typically seen indirect rates will be provided as well as a discussion of selecting a proper allocation base will also be provided. Participants will learn about the Federal Acquisition Regulation (FAR) Part 31 clauses that cover allowability, allocability, and reasonableness, as well as concepts such as Contract Terms, Accounting for Contract Costs, Labor System, Timekeeping, Unallowable Costs, Cost by Contract Line Item, Billings, Cost Accounting Information, and Management Reviews/Internal Audits, along with the applicable DFARS clauses. Finally, some common deficiencies will be discussed.
The presentation will also review monitoring subcontracts. DCAA will provide an overview of what a contractor should know about subcontracting: subcontract selection, subcontracting requirements, and the responsibilities of the prime contractor. The applicable FAR requirements will be discussed as well as the business systems involved with monitoring subcontracts. Participants will learn what information is required to be submitted with the annual incurred cost submission and what the subcontractor will need to provide to the prime. Finally, common deficiencies and frequently asked questions will be provided.
Learning Objective: The objective of this workshop is to help you understand how to develop a compliant cost accounting system and your responsibility for monitoring subcontract performance.
Government Area: Federal government procurement. State and local government procurement is not addressed in the workshop.
Target Audience: This workshop is intended for individuals who want to learn about the federal government accounting system requirements and monitoring subcontracts.
Joseph F. Greger, Senior Financial Liason Advisor, Small Business Program Manager, DCAA, Audit Liason Division