Audits

  • Surviving the DCAA Exit Conference and Audit Remediation

    Months can expire between the conclusion of an audit and when the DCAA issues an audit report. Save yourselves needless speculation and angst! Make sure to hold an exit conference before auditors leave your premises. You may want to request that the auditor and the auditor’s supervisor both attend the meeting, Your designated point of […]

  • Received a DCAA Audit Letter? Don’t Panic!

    For government contractors, auditing is a matter of when – not if. Yet many contractors still panic when they receive the inevitable audit request from the Defense Contract Audit Agency. If you have been preparing from the start of your contract, you should be in good shape to withstand an audit. Yet, even if you […]

  • Begin Planning Today for DCAA and DCMA Contract Reviews

    The minute you sign a contract with an agency of the federal government, one thing becomes certain: you will be audited. In fact, depending on your contract, you may undergo several types of contract, proposal, or business system reviews or audits. A wide body of continually changing federal regulations affect how the government ensures that […]

  • Outsource Your Incurred Cost Proposal

    Congratulations! You Submitted Your Incurred Cost Proposal. But is it Adequate? If your company has flexibly priced or time-and-materials federal contracts that contain the Allowable Cost & Payment clause (FAR 52.216‐7), you are required to file an Incurred Cost Proposal (also known as an Incurred Cost Submission) within six months of the end of your […]

  • Why January is the Best Time to Begin Preparing the Incurred Cost Proposal

    A new year presents new opportunities for working more efficiently and effectively. When dealing with federal contracts, the Incurred Cost Proposal (ICP) presents one of the biggest opportunities. You’re closing 2016 and preparing for taxes anyway. What better time to gather information and documents for the ICP? Not sure what an Incurred Cost Proposal is […]

  • Allowable Rental Costs

    We often receive questions regarding the amount of allowable rental costs between related parties. Rental costs are normally allowable to the extent they are reasonable and allocable. In an effort to reduce operating costs, small business owners often purchase a building under a separate entity and lease it back to the government contracting entity at […]

  • Year End Preparations for Incurred Cost Proposal

    December books closed ✔ Payroll tax returns filed (940/941/944) ✔ W-2s distributed ✔ 1099s delivered ✔ Incurred Cost Proposal…in Process…? You might not consider preparing for the Incurred Cost Proposal (ICP) during all of your other year-end tasks. You might think, “I’ve got 5 more months to worry about that.” Now is the best time […]

  • Updated DCAA Guidance for the Incurred Cost Proposal

    DCAA Recently provided updated guidance on the incurred cost proposal through two MRDs (audit guidance memos) and an update to the ICE model. The first MRD on August 27, 2015, updated the Incurred Cost Proposal Adequacy Checklist to aid in determining the auditability of the proposal. Note that there is no score or definitive guide […]

  • Are You Ready for a Contractor Purchasing System Review (CPSR)?

    A Contractor Purchasing System Review (CPSR) is performed by the Government to evaluate the effectiveness and efficiency of the contractor’s stewardship (spending) of Government funds on behalf of taxpayers and compliance with established government social and economic policies. The CPSR is like most audits in that it reviews the contractor’s policies and procedures, internal training, […]