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There has been some movement on the allowability of professional services and consultants costs. DCAA seems to be tweaking its audit guidance to better reflect the FAR rule (FAR 31.205-33). I think it is a good move by DCAA. In summary I have provided below the criteria to meet this standard. The government auditors need to understand what the professional servic

If a contractor performs cost reimbursable contracts subject to the Allowable Cost and Payment clause, the contractor is required to submit an incurred cost submission annually. The due date is 6 months after the close of the contractor's accounting year. Most small businesses' accounting year is December 31. In this case the due date is June 30. DCAA usually requ

An important concept in DCAA audits is the authority of DCAA Audits. That is DCAA has very little authority, not any different than a CPA firm in a commercial setting. That is their findings and recommendations are advisory only. It is the authority of the contracting officer only to act or not act on the DCAA findings. The process in these audits is that the contract

A common service I provide for government contractors is mock audits. Mock audits are especially valuable when a contractor is expecting an upcomming audit by DCAA. My mock audit morrors what DCAA will do. The mock audit will identify any issues that would arise in the DCAA audit. In my review I outline in detail any corrective action that is needed to pass the DC

An important milestone for government contractors and particularly to negotiated contracts is an adequate cost accounting system. Further, in today's contracting environment having an adequate accounting system can be a pre-requisite for contracts. Today many Requests For Proposals (RFP) require it. The need for a compliant accounting system depends on the contract