DCAA Compliant Accounting Software
PROCAS not only provides software solutions to meet the Defense Contract Audit Agency (DCAA) compliance requirements, but can also walk you through your various options for becoming DCAA compliant and what you need to do to meet these requirements. If you would like more information, give us a call at 410-730-4011 or fill out the form on this page: Contact. In the meantime, you will find information regarding DCAA and DCAA compliance below.
What is the DCAA?
The DCAA, or the Defense Contract Audit Agency, is the government agency responsible for performing all audits for the Department of Defense (DoD) to ensure government contractors comply with federal regulations regarding proper financial management. The DCAA also provides contract audit services for many other non-DoD government agencies. Their stated mission is to:
"Perform all necessary contract audits for DoD and provide accounting and financial advisory services regarding contracts and subcontracts to all DoD components responsible for procurement and contract administration. These services are to be provided in connection with the negotiation, administration, and settlement of contracts and subcontracts."
What is DCAA Compliance?
When the DCAA performs an audit or a pre-award survey of a government contractor, they are assessing the contractor's compliance with the Federal Acquisition Regulations (FAR). The FAR is the principal set of rules in the Federal Acquisition Regulation System. This system consists of sets of regulations issued by agencies of the Federal government to administer what is called the "acquisition process," the process through which the government purchases ("acquires") goods and services.
The FAR outlines the requirements of contractors during the acquisition process:
Why is DCAA Compliance so Important for Government Contractors?
If a contractor is not in compliance with the FAR, they may be precluded from future government contracts or teaming arrangements with other contractors. It is also possible for DCAA to suggest to the Contracting Officer to stop payments on work that is in progress or disallow costs on completed contracts. Therefore, it is critical for all contractors both large and small to comply with the FAR. Review the DCAA Publication "Information for Contractors" on DCAA's website at www.dcaa.mil for a look at requirements when working with DCAA auditors.
Is DCAA Getting Tougher on Government Contractors?
Yes, DCAA has changed the grading scale for accounting system audits from allowing degrees of non-compliance and offering suggestions for compliance, to an all or nothing, pass/fail grading system.
According to a DCAA memorandum (www.dcaa.mil/mmr/08-PAS-043.pdf): “DCAA will no longer report inadequate in part opinions. In addition, the audit report will identify the portions of the system affected by the deficiencies and recommend that the contracting officer disapprove the system (if applicable) and pursue suspension of a percentage of progress payments or reimbursement of costs… Further, suggestions to improve the system will no longer be reported in internal control audit reports.”
The PROCAS Solution for DCAA Accounting System Compliance
While the DCAA does not support, endorse or approve accounting software from any vendor, PROCAS Software is specifically designed to comply with the FAR. Since 1997, PROCAS has worked exclusively with government contractors, assisting them in complying with the FAR. PROCAS clients report that they consistently pass DCAA audits.
If you'd like to see the Standard Form 1408 (SF 1408) that DCAA uses for Preaward Accounting System Surveys you can view a blank one at this link:
Below you can view the SF 1408, Preaward Survey of Prospective Contractor Accounting System, and how PROCAS Software is designed to meet the DCAA and FAR accounting system requirements.
Click an image to view document:
PROCAS is glad to offer a 30 minute Flash demo and/or a one hour interactive demo so that you can see for yourself why so many government contractors use PROCAS for their DCAA audit requirement needs.
Contact PROCAS at 410-730-4011 or click here for a demo request to view the 30 minute Flash demo or to schedule the one hour interactive demo.
DCAA's Accounting Audit Checklist (Form SF1408)
Click here for the DCAA Accounting Audit Checklist (Form SF1408) using PROCAS accounting software.