Being DCAA compliant means following the agency's recommendations and guidance so that you remain compliant with federal law and are prepared for audits. It also means that your business systems are compliant with DCAA's requirements.
What does DCAA stand for?
Defense Contract Audit Agency
What is the purpose of a DCAA audit?
The Agency's primary function is to conduct contract audits and related financial advisory services. Contract audits are independent, professional reviews of financial representations made by defense contractors, and DCAA helps determine whether contract costs are allowable, allocable, and reasonable.
Do subcontractors have to be DCAA compliant?
All their work to date has been performed as a subcontractor, but one of their primes has mandated that they get a DCAA compliant system in place. ...Sep 20, 2011
What are common audits conducted by DCAA?
- Accounting System Requirements (Pre & Post Award) Audit.
- Real-time Labor Evaluation Audit.
- Provisional Billing Rates Audit.
- Public Vouchers (Progress Payments) Audit.
- Incurred Cost Submissions Audit.
What does a DCAA audit look for?
Contract audits are independent, professional reviews of financial representations made by defense contractors, and DCAA helps determine whether contract costs are allowable, allocable, and reasonable.
What is a DCAA post award audit?
Post-award audits — After a contract is awarded. A post-award audit could include an audit of costs incurred under the contract, compliance with Truth in Negotiations Act (TINA), compliance with Cost Accounting Standards (CAS), financial capability or claims made against you by other contractors.
What is DCAA compliant accounting system?
What is DCAA Compliant Accounting Software? DCAA Compliant Accounting software is any financial solution compliant with the Defense Contract Audit Agency (DCAA) requirements, the government organization responsible for auditing government contracts made with the Department of Defense (DoD).Nov 18, 2021
What does the DCAA do?
DCAA provides audit and financial advisory services to DoD and other federal entities responsible for acquisition and contract administration. DCAA's role in the financial oversight of government contracts is critical to ensure DoD gets the best value for every dollar spent on defense contracting.
What type of audits does DCAA do?
The two main categories of DCAA audits are pre-award audits (which take place before a contract is signed) and post-award audits (which can occur any time after a contract is signed). Some common pre-award audits are proposal pricing audits, forward pricing rate audits, and accounting system surveys.Apr 6, 2018
Why is DCAA compliance important?
It is in the government's best interests—on ethical, practical and political levels—to ensure that funds are spent properly. One of the ways it ensures that contractors spend money appropriately is through audits. These audits are meant to determine whether contract costs are allowable, allocable and reasonable.