U.S. Government Contracts Internal Control Frameworks

Our Services

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. COSO and U.S. Government contracts are match made in Congress, “Contractor business systems and internal controls are the first line of defense against waste, fraud, and abuse. Weak control systems increase the risk of unallowable and unreasonable costs on Government contracts.” (DFARS Business System Rule “Background”).

For further information on our services to design U.S. Government contract policies and procedures and internal controls surrounding accounting, estimating, purchasing and similar.

What Is An Internal Control Environment?

A Control Environment is a set of standards, structures, and processes that provide the foundation for performing internal control within the entity.

Who is Required to Have an Internal Control Environment?

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…”; and