If a contractor has received a contract containing the Allowable Cost and Payment clause (FAR 52.216-7), the clause requires preparation of an Indirect Cost Rate Proposal (ICRP). The clause is applicable to all cost-type contracts. The proposal also goes by the following industry names “Incurred Cost Proposal” (ICP) and “Incurred Cost Submission” (ICS). The proposal […]
DCAA Audit Support
RKI offers audit support in response to U.S. Government audit findings as well as audit support services during the course of the audit.
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The Defense Contract Audit Agency (DCAA) and Defense Contract Management Agency (DCMA) and other cognizant U.S. Government audit functions perform the following audits including, but not limited to:
- Cost and Pricing audits
- Indirect Cost Rate Proposal Audits (“Incurred Cost Audits”)
- Pre-Award accounting system audits
- Post-Award accounting system audits
- DFARS Estimating System audits
- Contractor Purchasing System Reviews (CPSR)
- Direct Cost Audits
- Forward Pricing Rate Audits
- Cost Accounting Standards (CAS) Audits
DCAA Audit Services
Our team is skilled and experienced in navigating DCAA awards and the potential pitfalls that come with them.
U.S. Government Contract Risk Assessments
RKI identifies the risks applicable to your current and/or anticipated U.S. Government contracts. RKI then tailors a Gap Analysis program to those risks and performs data analysis and personnel walkthroughs of relevant current state practices to identify gaps. All gaps are assigned a risk and materiality level with recommended corrective or implementation efforts.
U.S. Government Contracts Internal Control Frameworks
RKI works with you to design proper U.S. Government contract policies and procedures to demonstrate a sound U.S. Government contract compliance control environment. We have established risk control matrixes that enable efficient drafting of policies, procedures, and internal control activities tailored to your business. We use a COSO based approach to U.S. Government contract compliance and internal control activity design.
U.S. Government Audit (DCAA/DCMA) Support
An adequate response to U.S. Government inquiry can stave off a host of downstream administrative warfare with auditors. RKI can assist with ensuring audit responses meet the expectations of auditors and, more importantly, the requirements of your contracts.
Pre-Award Accounting System Reviews
An evaluation to determine if your acounting system is adequately designed to perform U.S. Government cost-type contracts, including but not limited to all cost-reimbursement, Time & Material (T&M) and Fixed Price Redetermination contracts. It focuses on an accounting system’s ability to demonstrate it accumulates costs by project and can equitably distribute indirect costs to final cost objectives for purposes billing under cost-type awards. The Pre-Award accounting system review evaluates only the design of your accounting system and not the operating effectiveness. Post award accounting system reviews are a separate scope and service
DCAA Frequently Asked Questions
Our team is skilled and experienced in navigating DCAA awards and the potential pitfalls that come with them.
An accounting system report stating the adequacy of the system that may be used to satisfy solicitation requirements, contracting officer inquiries, and/or prime contract inquiries.
Certified Public Accounting (CPA ) firms, such as RKI, who specialize in U.S. Government contracts, also termed independent public accounting (IPA) firms. The Defense Contract Audit Agency (DCAA) also performs these reviews. However, over time the Agency has had less resource availability to perform them. To aid contractors and contracting officers with satisfying pre-award accounting system adequacy, IPAs like RKI have performed these reviews to satisy the requiements.
Because Contracting Officers are prohibited from awarding a contractor a cost-type contract without one, pursuant to FAR 16. As reference, 16.301-3 “(a) A cost-reimbursement contract may be used only when
(3) The contractor’s accounting system is adequate for determining costs applicable to the contract or order…”
(3) The contractor’s accounting system is adequate for determining costs applicable to the contract or order…”
An evaluation of a contractor’s current state practices against its current or anticipated U.S. Goernment contract requirements.
To identify gaps in current state practices that are non-compliant in demonstrating compliance with contractual requirements and establish a project/implementation plan to address those gaps, where applicable. They also serve to identify best practice opportunities for a contractor to consider, including alternative procedures, resourcing, and/or technologies to aid in their compliance obligations.
A Control Environment is a set of standards, structures, and processes that provide the foundation for performing internal control within the entity.
While internal control environments are most famous for the attention they receive pursuant to Sarbanes Oxley 404 (“Sox 404”), the U.S. Government also requires its contractors to have sound control environments. See:
– DFARS Accounting System criteria, “The Contractor’s accounting system shall provide for…A sound internal control environment, accounting framework, and organizational structure…”
– DFARS Accounting System criteria, “The Contractor’s accounting system shall provide for…A sound internal control environment, accounting framework, and organizational structure…”
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Make A Plan
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2
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We'll work with you to ensure full compliance with your contracts, facilitating a long, lucrative partnership between your business and the US Government.